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Old Southwest Canning Co. has determined that any one of four sterilizing machines can be used in its chili-canning operation. The costs of the machines
Old Southwest Canning Co. has determined that any one of four sterilizing machines can be used in its chili-canning operation. The costs of the machines are estimated; all machines have a 5-year useful life. If the MARR is 25% per year, determine which machine should be selected on the basis of the rate of return (ROR) analysis. Machine 1 12 3 4 First Cost, $ -28,300 -51,000 -32,000 -33,000 Select machine (Click to select) Annual Operating Cost (AOC), $ -20,000 -12,000 -19,000 -18,000
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