FastBits Electronic Company Sdn. Bhd. is evaluating new precision inspection devices to help verify package quality. The manager has obtained the following bids from four companies. All devices have a life of five years and a minimum attractive rate of return of 5%. The alternatives are mutually exclusive. Description Initial Cost (RM) Company A Company B Company C Company D 500000 119000 420000 200000 Annual Costs (RM) 900 12000 23000 9000 Net Cash Flows (RM) 125000 33320 105000 46000 IRR 7.9% 12.4% 7.9% 4.8% Determine the annual benefits of the devices from all four companies. Company A: Company B: Company C: Company D: Format: 329900 Format: 98850 Format: 888000 Format: 96000 Device from which company has the highest annual benefit? Format: A FastBits should reject the bid from which company based on the given individual IRR? Format : A Using incremental internal rate of return analysis, from which company, if any, should the manager purchase the new precision inspection device? Use trial and error method with 5% and 11% interest rates. Understood? (Y/N) Step 1- Eliminate Company Step 2-Rank Company from no 1-2-3 Step 4 Incremental IRR first comparison Step 5-Remove Company from selection Repeat Step 4 Incremental IRR 2nd comparison Format : A Format: A Format: x-x-x Format: 5.9 Format: A Format: 8.6 Step 5 Choose Company Format: A Demonstrate that the same company selection would be made with proper application of the Present Worth (PW) method. PW Company A PW Company B PW Company C PW Company D Thus, choose Company Format: 75985 Format: 44266 Format: 24439 Format:-786 Format: A 2035 SELECT gambar FROM computerized_hw WHERE id = '3038"