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5.- Group Validating Exercise. To eam credit on this question all members of the group need to complete the exercise successfully. The KLN Company

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5.- Group Validating Exercise. To eam credit on this question all members of the group need to complete the exercise successfully. The KLN Company is attempting to determine the economically best size of processor machine for their facilities. The six alternative machine sizes which are feasible are as given in the Table below. Each machine has a life of 100 years and no salvage value. The company has a total capital budget of $350 000 and a MARR of 15%. Which machine should they buy? Size of Machine Annual Revenue, R Investment. I Economy $ 7 200 $60000 12% Regular 25 000 100 000 25% Super 36000 200 000 18% Delux 45 000 220 000 20.45% Bulk 50 000 300000 16.67% Extended 52 000 385000 20.5% Extended Super Regular Economy Bulk Deluxe

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