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8-19 Andrews Manufacturing offers three models for one of its products to its customers. You have been asked to analyze the choices from the customer's
8-19 Andrews Manufacturing offers three models for one of its products to its customers. You have been asked to analyze the choices from the customer's perspec- tive. Which model should a customer choose if each model has a life of 12 years? Doing nothing is an alternative. Alternative Regular Economy Deluxe $220,000 $125,000 $75,000 43,000 13,000 First cost 79,000 38,000 28,000 8,000 Annual benefit Maintenance and operating costs Salvage value 3,000 16,000 6,900 (a) Construct a choice table for interest rates from 0% to 100% (b) MARR 15%. Using incremental rate of return analysis, which alternative, if any, should the customer choose
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