sis with MARR = 13.5% is used to determine which entertainment project offers the best e equal to and the decision should be taken is Machine 1 Machine 2 Machine 3 First cost, $ Annual operating cost. S Salvage value, -5,000 -3,500 +500 6.500 -3.200 900 15.000 -1.400 +1,000 B to and eliminate project 1 t to and eliminate project 3 3 to and eliminate project 1 1 to and eliminate project 3

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Economics
The incrementai ROR analysis with MARR = 13.5% is used to determine which entertainment project offers the best economic choice. The project 3 to project 1
comparison results in Ai equal to
and the decision should be taken is
Machine 1
Machine 2
Machine 3
First cost, $
Annual operating cost. S
Salvage value, S
Life, years
-5.,000
3.500
6.500
-3.200
-15.000
1,400
+1,000
+500
+900
N0
14.66%, keep project 3 to and eliminate project 1
13.76%, keep project 1 to and eliminate project 3
13.76%, keep project 3 to and eliminate project 1
14.66%, keep project 1 to and eliminate project 3
Transcribed Image Text:Economics The incrementai ROR analysis with MARR = 13.5% is used to determine which entertainment project offers the best economic choice. The project 3 to project 1 comparison results in Ai equal to and the decision should be taken is Machine 1 Machine 2 Machine 3 First cost, $ Annual operating cost. S Salvage value, S Life, years -5.,000 3.500 6.500 -3.200 -15.000 1,400 +1,000 +500 +900 N0 14.66%, keep project 3 to and eliminate project 1 13.76%, keep project 1 to and eliminate project 3 13.76%, keep project 3 to and eliminate project 1 14.66%, keep project 1 to and eliminate project 3
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