Example $11-1$:

You are asked to determine which options your company should purchase given a budget of $$100,000$

and a MARR of $15\%.$

Option A: Purchase a new box truck for $$25,000$ to increase shipping capabilities. It is estimated it will

increase profits by $$6,000$ per year and will be sold after $4$ years for $$4,000.$

Option B: Contract an accounting firm to do your accounting and taxes. They charge $$20,000$ now and

will perform your accounting work for $4$ years. It is estimated you will save $$9,000$ per year instead of

having in$-$house personal perform accounting tasks.

Option C: Purchase a new production machine for $$50,000.$ It is estimated that the machine will increase

profits by $$15,000$ per year. After $4$ years it will be sold for $$20,000.$