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The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: SUPR-X X X-TRUD Data Useful
The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: SUPR-X X X-TRUD Data Useful Life, Years 17 5 11 First Cost $2,730,000 $2,110,000 $3,000,000 Salvage Value $80,000 $95,000 $92,000 Annual Benefit $297,000 $521,000 $565,000 M&O $85,000 $66,000 $80,000 M&O Gradient $11,500 $15,000 $14,000 The company's interest rate (MARR) is 6%. 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 $-102,228 higher than X and $76,176 higher than X-TRUD. Choosing SUPR-X will maximize the EUAB-EAUC; its value is $184,772 higher than X and $134,176 higher than X-TRUD. O Choosing SUPR-X is best because it has the lowest M&O cost in yr1
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