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2. You decided to buy a new packaging equipment for your factory. There are 4 models that are in consideration to choose from. Every single
2. You decided to buy a new packaging equipment for your factory. There are 4 models that are in consideration to choose from. Every single model packages different amount of products per year. Thus, there is a revenue difference between each alternatives. Use incremental ROR analysis by using the information given below to select the best alternative among others. Assume all of them have 12 years of life expectancy and MARR is 14% per year. (40 pts.) D First Cost, s -30,000 -27,000 -15.000 -20,000 Annual Cash Flow, $/year +8,000 +5,000 +3,000 +4,000 Salvage, $ 12,000 15,000 8,000 10,000
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