NOTE: use 4 years instead of 3 years Solve for the Following:

a)incremental ROR

b)Future Worth Analysis

c)Payback Period

d)Benefit Cost Ratio Analysis

Change the first Cost for company B to $35,000 and re-calculate your answers for a-d above.

MARR IS 15%

8-18 QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be used for 3 years. Company Company Company C $25,000 $15,000 1,600 $20,000 900 First cost 400 Maintenance and operating 8,000 3,000 Annual benefit 13,000 6,000 9,000 4,500 Salvage value 8-18 QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be used for 3 years. Company Company Company C $25,000 $15,000 1,600 $20,000 900 First cost 400 Maintenance and operating 8,000 3,000 Annual benefit 13,000 6,000 9,000 4,500 Salvage value