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Nighhigh Newsagent wants to replace its cash register and is currently evaluating two models that seem reasonable. The information on the two alternatives, CR1000

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Nighhigh Newsagent wants to replace its cash register and is currently evaluating two models that seem reasonable. The information on the two alternatives, CR1000 and CRX, is shown in the table. First Cost Annual Savings Annual Maintenance Cost CR1000 $690 $245 $30 in year 1, increasing by $10 each year thereafter CRX $1100 $420 $60 Service Life Scrap value 4 years $75 a. If Nighhigh Newsagent's MARR is 10 percent, which type of cash register should it choose? Use the present worth method. 6 years $250 b. For the less preferred type of cash register found in part (a), what scrap value would make it the preferred choice? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 10%. a. The present worth of the CR1000 is $ The present worth for CRX is $ . Nighhigh Newsagent should choose th cash register.

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