Determine the incremental rate of return for machine

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Reference no: EM131532809

Three machines have been selected for comparison by a manufacturing company. Their data is tabulated below. The company is using an investment MARR of 20%. Using Equivalent Uniform Annual Worth method of analysis, determine the Incremental Rate of Return for the machine, which should be selected. Show work, not spreadsheet.

Machine A, B , C

Cost $260,000 $130,000 $185,000

O&M/yr $18,000 $80,000 $45,000

Revenue/yr $150,000 $150,000 $150,000

Salvage $105,000 $35,000 $56,000

Life 4 4 4

Reference no: EM131532809

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