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8-18 QZY, Inc. is evaluating new widget machine offered by three companies. The chosen machi will be used for 3 years. Company Company Company $25,000

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8-18 QZY, Inc. is evaluating new widget machine offered by three companies. The chosen machi will be used for 3 years. Company Company Company $25,000 400 $20,000 900 First cost $15,000 Maintenance 1,600 and operating Annual benefit 8,000 Salvage value 3,000 13,000 6,000 9.000 4,500 NOTE: MARR used is 15%. Use 4 years instead of 3 years. ("The chosen machine will be used for 4 years.") Solve for the following for each company machines: 1. Incremental ROR 2. Future Worth Analysis 3. Payback Period 4. Benefit Cost Ratio Analysis 5. Change the First Cost for Company B to $35,000 and re-calculate your answers for a-d above

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