Wayward Airfreight, Inc. has asked you to recommend a new automatic parcel sorter. You have obtained the following bids:

Using an MARR of 15% and a rate of return analysis, which alternative, if any, should be selected?

SORT-OF U-SORT-M SHIP-R $184,000 $235,000 $180,000 First cost Salvage value 38,300 44,000 14,400 Annual benefit 75,300 89,000 68,000 Yearly maintenance 21,000 21,000 12,000 And operating cost Useful life, in years