Data for Machines X and Y are listed below. With an interest of 8%, which machine would be selected based upon equivalent uniform annual cost? 6. First cost Annual maintenance Salvage value Useful life 500 600 5 years $10,000 200 1,000 15 years 7. Two alternatives are being considered by a food processor for the warehousing and distribution of its canned products in a sales region. The canned products come in standard cartons of 24 cans per carton. The two alternatives are Alfernative A: To have its own distribution system. The administrative costs are estimated at $43,000 per year and other general operating expenses are calculated at $0.009 per carton. A warehouse will have to be purchased which costs $300,000 Alternative B: To sign an agreement with an independent distribution company, which is asking a payment of $0.10 per carton distributed Assume a study period of 10 years and that the warehouse can be sold at the end of the period for $200,000 a. Which altenative should be chosen if they expect that the number of cartons to b. Find the minimum numbers of cartons per year which will make the alternative of be distributed will be 600,000 per year? having a distribution system (Alt, A) more profitable than to sign an agreement with the distribution company (Alt. B). 8. Tony invested $15,000 in a high yield account. At the end of 30 years he closed the account and received $539,250. Compute the effective interest rate he received on the account. 9 Does the following project have a positive or negative rate of return? Show how thus us known to be true Investment cost Net benefits Salvage value Useful life $2,500 $300 in year 1, increasing by $200 per year 4 years 10. The manager of a local restaurant is trying to decide whether to buy a charcoal broiling unit or an electric grill for cooking hamburgers. A market stuxly shows customers prefer charcoal broiling, but the unit is more expensive. The managers MARR is 20%. The manager estirnates the costs and net benefits form the two alternatives as follows: End of year Browler Gr $2,200 1,450 990+710 Use incremental rate of return analysis to determine which alternative the manager should choose