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You decided to buy a new packaging equipment for your factory. There are 4 models that are in consideration to choose from. Every single model
You decided to buy a new packaging equipment for your factory. There are 4 models that are in consideration to choose from. Every single model packages different amount of products per year. Thus, there is a revenue difference between each alternatives. Use incremental ROR analysis by using the information given below to select the best alternative among others. Assume that minimum attractive rate of return is 10%. First Cost, $ Annual Cash Flow, $/year Salvage, $ Life A B C -35,000 -37,000 -15,000 -6,000 -5,000 -9,000 +3,000 +4,000 +5,000 5 10 5 D -45,000 -8,000 +5,000 10 You decided to buy a new packaging equipment for your factory. There are 4 models that are in consideration to choose from. Every single model packages different amount of products per year. Thus, there is a revenue difference between each alternatives. Use incremental ROR analysis by using the information given below to select the best alternative among others. Assume that minimum attractive rate of return is 10%. First Cost, $ Annual Cash Flow, $/year Salvage, $ Life A B C -35,000 -37,000 -15,000 -6,000 -5,000 -9,000 +3,000 +4,000 +5,000 5 10 5 D -45,000 -8,000 +5,000 10
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