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Ridgely Custom Metal Products (ROM P} must purchase a new tube bender. They consider three models with costs and benets as per the following table:
Ridgely Custom Metal Products (ROM P} must purchase a new tube bender. They consider three models with costs and benets as per the following table: First Yearly Net Salvage Cost Savings Value $100 000 $50 000 $20 000 150 000 50 000 30 0'00 200 000 ?5 000 100 000 RCMP's after-tax MARR is 11 percent and the corporate tax rate is 52 percent. A tube bender is a CCA Class 8 asset with a depreciation rate of 20%. Using the present worth method and the least-cost multiple of the service lives, which tube bender should it buy
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