Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of rate of return analysis. The companys expected expenses and revenues for each option are below, and they use a MARR value of 18% per year.

Initial cost Annual operating cost Annual revenue Salvage Value Useful life Method: Your choice Variable Speed $300,000 $135,000 $221,000 $75,000 6 year Dual Speed -$255,000 $130,000 $205,000 $50,000 6 year