Stands for maintenance and operation cost

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The following table summarizes information which are associated with three new 3D Printers being considered for use in a manufacturing plant. Note that M&O stands for Maintenance & Operation Cost.

Useful Life (Years) 13 11 9

First Cost $2,780,000   $2,630,000   $2,300,000 

Salvage Value $118,000 $97,000 $82,000 

Annual Benefit $670,000 $650,000 $580,000 

M&O $78,000 $71,000 $65,000 

M&O Gradient $15,000 $12,500 $11,000

The company's interest rate (MARR) is 12%. Which 3D Printer should the company choose? Use Annual Cash Flow Analysis.

Reference no: EM13817939

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