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At what rate will both projects be equally attractive? Machine A Machine B Year Initial Cost Salvage Benefits Annual Costs Initial Cost Salvage Benefits Annual
At what rate will both projects be equally attractive?
Machine A | Machine B | |||||||
Year | Initial Cost | Salvage | Benefits | Annual Costs | Initial Cost | Salvage | Benefits | Annual Costs |
0 | ($1,250,000) | ($1,880,000) | ||||||
1 | $252,000 | ($161,250) | $776,000 | ($160,800) | ||||
2 | $269,640 | ($166,088) | $642,320 | ($165,624) | ||||
3 | $288,515 | ($171,070) | $550,482 | ($170,593) | ||||
4 | $308,711 | ($176,202) | $460,616 | ($175,711) | ||||
5 | $330,321 | ($181,488) | $492,859 | ($180,982) | ||||
6 | $254,000 | $353,443 | ($186,933) | $385,680 | $527,359 | ($186,411) |
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