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PLEASE SHOW ALL STEPS AND CORRECT ANSWER. The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam
PLEASE SHOW ALL STEPS AND CORRECT ANSWER.
The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data X X-TRUD SUPR-X Useful Life, Years 17 11 13 First Cost $2,230,000 $2,080,000 $2,100,00 Salvage Value $87,000 $118,000 $116,000 Annual Benefit $329,000 $598,000 $618,000 M&O $79,000 $70,000 $50,000 M&O Gradient $16,000 $9,000 $12,500 The company's interest rate (MARR) is 3%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason. Choosing SUPR-X is best because it has the highest Annual Benefit Choosing SUPR-X will maximize the EUAB-EAUC; its value is $132,810 higher than X and $-1,942 higher than X-TRUD. O Choosing SUPR-X is best because it has the lowest M&O cost in yr1 Choosing SUPR-X will maximize the EUAB-EAUC; its value is $450,810 higher than X and $38,058 higher than X-TRUDStep by Step Solution
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