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8-18 QZY, Inc. is evaluating new widget machines offered by three companies. Company Company Company A B C $25,000 First cost $15,000 $20,000 1,600 400
8-18 QZY, Inc. is evaluating new widget machines offered by three companies. Company Company Company A B C $25,000 First cost $15,000 $20,000 1,600 400 Maintenance 900 and operating Annual benefit 8,000 13,000 9,000 Salvage value 3,000 6,000 4,500 Useful life, in years 4 4 4 (a) Construct a choice table for interest rates from 0% to 100%. (b) MARR = 15%. From which company, if any, should you buy the widget machine? Use rate of return analysis
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