Old Southwest Canning Co. has determined that any one of four machines can be used in its
Fantastic news! We've Found the answer you've been seeking!
Question:
Old Southwest Canning Co. has determined that any one of four machines can be used in its chili-canning operation. The cost of the machines are estimated below, and all machines have a 5-year life. If the minimum attractive rate of return is 25% per year, determine which machine should be selected on the basis of a rate of return analysis.
Machine 1: First cost is -28000 and AOC is -20,000
Machine 2: -51,000 and AOC is -12000
Machine 3: -32000 and AOC is -19000
Machine 4: -33000 and AOC is -18000
Posted Date: