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Please show the steps The executives of the ABC Company are trying to select the most economical feeder machine. Cash flows for the six available
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The executives of the ABC Company are trying to select the most economical feeder machine. Cash flows for the six available models are shown in Table 9-15. The MARR is 8%. (a) Compute the ROR for each alternative model. (b) Determine which model should be purchased Ans. (a) i%-10%, is-25%, i 18%, i5-20.5%, i* = 19.5%, i)-20.5%; (b) F 9.30 Table 9-15 End of Year $50 000$100 000$200 000 -$220 000 -$250 000 -$380 000 13 190 13 190 13 190 13 190 13 190 63991.20 63 991.20 3718563991.20 63 991.20 7185 63 991.20 74 386.40 74 386.40 74 386.4 74 386.40 74 386.40 82 693.50 82 693.50 82 693.50 82 693.50 82 693.50 128 485.60 128 485.60 128 485.60 128 485.60 128 485.60 37 185 37 185 4 37 185 Which model should be purchased in Problem 9.30, if there is a budget constraint of (a) $280 000? $230 000? 9.31 (b) (c) $210 000? Ans. (a) E; (b) D; (c) CStep by Step Solution
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