The following annual costs are associated with three new extruder machines to be used for use in a Styrofoam cup plant: Data X X-TRUD SUPR-X Useful-Life, Yr 9 13 11 First Cost $2,300,000 $2,780,000 $2,540,000 Salvage Value 82,000 118,000 97,000 Annual Benefit 580,000 678,000 670,000 M&O 80,000 78,000 70,000 M&O Gradient 11,000 15,000 12,500 The company's interest rate (MARR) is 12%. Which extruder should the Styrofoam Company choose? Use Annual Cash Flow Analysis.

The following annual costs are associated with three new extruder machines to be used for use in a Styrofoam cup plant: Data X X-TRUD SUPR-X Useful-Life, Yr 9 13 11 First Cost $2,300,000 $2,780,000 $2,540,000 Salvage Value 82,000 118,000 97,000 Annual Benefit 580,000 678,000 670,000 M&O 80,000 78,000 70,000 M&O Gradient 11,000 15,000 12,500 The company's interest rate (MARR) is 12%. Which extruder should the Styrofoam Company choose? Use Annual Cash Flow Analysis.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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