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The following costs are associated with three tomato-peeling machines being considered for use in a canning plant. If the canning company uses an interest rate
The following costs are associated with three tomato-peeling machines being considered for use in a canning plant. If the canning company uses an interest rate of 12%, which is the best alternative? Use NPW to make your decision. (Note: Consider the least common 377 multiple as the study period.) Machine A B C First cost $52,000 $63,000 $67,000 O & M costs 15,000 9,000 12,000 Annual benefit 38,000 31,000 37,000 Salvage value 13,000 19,000 22,000 Useful life (yrs) 4 6 12 Consider the following three alternatives. There is also a "do nothing" alternative
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