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There are five alternative machines to do a given job. Each is expected to have a market value of 100% of the investment amount at

There are five alternative machines to do a given job. Each is expected to have a market value of 100% of the investment amount at the end of its life of 4 years. The firm's minimum attractive rate of return is 12%. Analyze the sensitivity of the best choice die to the salvage value ranging from 0% to 100% of the initial investment.

Machines
A B C D E
Investment $ 10,000 $ 14,000 $ 21,000 $ 27,000 $ 34,000
Net Cash Flow per Year 1,100 1,800 2,800 3,400 4,450

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