4. Any one of five machines can be used in a certain phase of a canning operation. The costs of the machines are shown below and all are expected to have a 10-year life. If the company's minimum attractive rate of return is 16% per year, determine which machine should be selected on the basis of rate of return. 1 2 3 First Cost 30,000 33,000 32,000 Annual Cost 20,000 18,000 19,000 4 50,000 13,000 5 40,000 14,000

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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am. 132.

4. Any one of five machines can be used in a certain phase of a canning operation.
The costs of the machines are shown below and all are expected to have a 10-year
life. If the company's minimum attractive rate of return is 16% per year,
determine which machine should be selected on the basis of rate of return.
1
2
3
First Cost
30,000
33,000
32,000
Annual Cost
20,000
18,000
19,000
4
50,000
13,000
5
40,000
14,000
Transcribed Image Text:4. Any one of five machines can be used in a certain phase of a canning operation. The costs of the machines are shown below and all are expected to have a 10-year life. If the company's minimum attractive rate of return is 16% per year, determine which machine should be selected on the basis of rate of return. 1 2 3 First Cost 30,000 33,000 32,000 Annual Cost 20,000 18,000 19,000 4 50,000 13,000 5 40,000 14,000
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