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In the Rawhide Company (a leather products distributor), decisions regarding approval of proposals for capital investment are based upon a stipulated MARR of 17%

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In the Rawhide Company (a leather products distributor), decisions regarding approval of proposals for capital investment are based upon a stipulated MARR of 17% per year. The five packaging devices listed in the table below were compared, assuming a 10-year life and zero market value for each at that time. Which one (if any) should be selected? Make any additional calculations that you think are needed to make a comparison, using the ERR method. Let e=15% Packaging Equipment C D E B $39,000 $49,000 $54,000 $60,000 $71,000 10,900 19,200 19.0% 18.6% A Capital investment Annual revenues less expenses External rate of return (ERR) 14,200 19.4% 16,300 16,900 19.9% 19.1% Click the icon to view the interest and annuity table for discrete compounding when i 15% per year. Which alternative would you choose as a base one? Choose the correct answer below O A. C B. A C. E D. B

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