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Question 7 The following data are associated with three grape-crushing machines under consideration by Rabbit Ridge Wineries LLC. Doing nothing is a viable choice. You

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Question 7 The following data are associated with three grape-crushing machines under consideration by Rabbit Ridge Wineries LLC. Doing nothing is a viable choice. You may use either analysis method. Super Crush Savage Crush First Cost $63,000 $105,000 O&M Costs 9.000 12,000 Annual Benefits 31,000 37,000 Salvage Value 19,000 22,000 Useful Life 6 years 12 years Market Value at year 10 22,000 25,000 If Rabbit Ridge uses an interest rate of 10%, which alternative, if any, should be chosen based on a 10-year time horizon? Question 7 The following data are associated with three grape-crushing machines under consideration by Rabbit Ridge Wineries LLC. Doing nothing is a viable choice. You may use either analysis method. Super Crush Savage Crush First Cost $63,000 $105,000 O&M Costs 9.000 12,000 Annual Benefits 31,000 37,000 Salvage Value 19,000 22,000 Useful Life 6 years 12 years Market Value at year 10 22,000 25,000 If Rabbit Ridge uses an interest rate of 10%, which alternative, if any, should be chosen based on a 10-year time horizon

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