Question
A company is trying to decide between two machines that are necessary in its manufacturing facility. If management has minimum attractive rate of return (MARR)
A company is trying to decide between two machines that are necessary in its manufacturing facility. If management has minimum attractive rate of return (MARR) of 15%, which of the following machine should be chosen? Use annual cash flow analysis method
| Machine A | Machine B | |
| First cost | $45,000 | $24,000 |
| Annual Cost | $31,000 | $35,000 |
| Overhaul in Year 4 | $3,000 | $5,000 |
| Salvage Value | 0 | 0 |
| Useful Life | 8 years | 6 years |
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Forensic Analytics Methods And Techniques For Forensic Accounting Investigations
Authors: Mark J. Nigrini
2nd Edition
1119585767, 9781119585763
