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A Newsagent wants to replace its cash register and is currently evaluating three models to select one of them. The information on the three models
A Newsagent wants to replace its cash register and is currently evaluating three models to select one of them. The information on the three models is shown in the following table. Use an appropriate rate of return method to determine which model the Newsagent should select. The MARR is given as 10%. Model 2 $1100 $440 Model 3 $1000 $350 Model 1 First Cost $680 Annual Savings $245 Annual Maintenance $35 in year 1, increasing by Cost $10 each year thereafter Service Life 4 years Salvage Value $100 $60 $45 6 years 6 years $250 $150
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