1. Prepare a tabulation of cash flow for the alternatives shown below.

	Machine A	Machine B
First cost,$	-15,000	-25,000
Annual operating cost, $/year	-1,600	-400
Salvage value, $	3,000	6,000
Life, years	3	6

2. The manager of a canned food processing plant is trying to decide betwee two labeling machines. Determine which should be selected on the basis of rate of return with a MARR of 20% per year.

	machine A	machine B
First cost, $	-15,000	-25,000
Annual operating cost, $/year	-1,600	-400
Salvage value, $	3,000	4,000
Life, years	2	4

3. A metal plating company is considering four different methods for recovering by product heavy metals from a manufacturing site's liquid waste. The investment costs and incomes associated with each method have been estimated. All methods have an 8-year life. The MARR is 11% per year. (a) If the methods are independent, because they can be implemented at different plants, which ones are acceptable? (b) If the methods are mutually exclusive determine which one method should be selected, using a ROR evaluation.

Method	First Cost, $	Salvage Value, $	Annual Income, $/year
A	-30,000	+1,000	+4,000
B	-36,000	+2,000	+5,000
C	-41,000	+500	+8,000
D	-53,000	-2,000	+10,500