Question
8. The PARC Co. is considering purchasing a new widget machine. The company interest rate (MARR) is 12%. Which (if either) of the two
8. The PARC Co. is considering purchasing a new widget machine. The company interest rate (MARR) is 12%. Which (if either) of the two new widget machines for which annual cost data are available should PARC purchase? The following annual cost data are available for the two possible alternatives: Data WIDGETS-R-US WEE-WILLY WIDGETS Useful Life, Years 6 6 First Cost $2,780,000 $2,250,000 Salvage Value $85,000 $70,000 Annual Benefit $870,000 $675,000 M&O $82,000 $60,000 M&O Gradient $8,000 $10,000 a) Make a plot showing the NPW for all options, also include on the plot the increment between them. b) Write out the Choice Table for this situation. As this question was originally to be solved by hand-comment on what that solution would be.
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