Question
A diagnostics laboratory is considering one of the following microscopes with digital recording and pattern detection software: Option A Option B Options C Cost $20,000
A diagnostics laboratory is considering one of the following microscopes with digital recording and pattern detection software:
| Option A | Option B | Options C | |
| Cost | $20,000 | $30,000 | $15,000 |
| Savings | $1,199 | $2,199 | $1,000 |
| IRR | 6% | 9% | 7% |
Each machine will have a 20-year life with no salvage value. There is a lot of debate within the company as to whether these devices are really going to last long, but they assume MARR of 10% as reasonable.
- Which system do you recommend and why?
- What is MARR? What is the formula to calculate it?
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Auditing A Business Risk Approach
Authors: Larry E. Rittenberg, Karla Johnstone, Audrey Gramling
7th Edition
0324663722, 978-0324663723
