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Three industrial teams (small, medium, large) are being evaluated for acquisition. Use the following information to perform the economic analysis by Benefit / Cost and
Three industrial teams (small, medium, large) are being evaluated for acquisition. Use the following information to perform the economic analysis by Benefit / Cost and determine which is the best alternative. The company uses a MARR of 7% to evaluate its investments:
| Small | Medium | Large | |
| Inicial Inversion | $1,500 | $2,000 | $5,000 |
| Cost's operation/hr | $35 | $50 | $76 |
| Income/hr | $55 | $75 | $100 |
| Hours in funtion per year | 1,000 | 1,100 | 1,200 |
| Useful life | 2 years | 3 years | 5 years |
| Residual value | 0 | $150 | $760 |
a) In which of the equipment should you invest? b)What is the benefit / cost ratio of the equipment with the WORST Benefit / Cost ratio?
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Financial Forensics Body Of Knowledge
Authors: Darrell D. Dorrell, Gregory A. Gadawski
1st Edition
0470880856, 978-0470880852
