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ADDITIONAL PROBLEM: The following costs are associated with three new machines being considered for use: DATA First Cost Salvage Value Annual Benefit M & O

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ADDITIONAL PROBLEM: The following costs are associated with three new machines being considered for use: DATA First Cost Salvage Value Annual Benefit M & O Useful Life MACHINE A $705,000 $56,000 $223,750 $28,000 10 MACHINE B $920,000 $78,000 $276,200 $30,000 10 MACHINE C $560,000 $47,000 $110,000 $23,000 10 The Company interest rate (MARR) is 15% and "Do Nothing" is an option. Use NPW AND THE INCREMENTAL ANALYSIS METHOD TO CALULATE THE INTERNAL RATE OF RETURN and decide which machine should be purchased. DO NOT CALCUALTE THE EXA MArrAS YOUR DECISION POINT CT INTERNAL RATE OF RetURN FOR EACH cOMPARISON !!! USE ADDITIONAL PROBLEM: The following costs are associated with three new machines being considered for use: DATA First Cost Salvage Value Annual Benefit M & O Useful Life MACHINE A $705,000 $56,000 $223,750 $28,000 10 MACHINE B $920,000 $78,000 $276,200 $30,000 10 MACHINE C $560,000 $47,000 $110,000 $23,000 10 The Company interest rate (MARR) is 15% and "Do Nothing" is an option. Use NPW AND THE INCREMENTAL ANALYSIS METHOD TO CALULATE THE INTERNAL RATE OF RETURN and decide which machine should be purchased. DO NOT CALCUALTE THE EXA MArrAS YOUR DECISION POINT CT INTERNAL RATE OF RetURN FOR EACH cOMPARISON !!! USE

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