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The Croc Co. is considering a new milling machine from among three alternatives: Alternative DeluxeRegularEconomy First cost $220,000 $125,000$75,000 Annual benefit 79,000 43,000 28,000 Maintenance...

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The Croc Co. is considering a new milling machine from among three alternatives:
Alternative
DeluxeRegularEconomy
First cost $220,000 $125,000$75,000
Annual benefit 79,000 43,000 28,000
Maintenance and 38,000 13,000
8,000 L. operating costs
Salvage value 16,000 6,900 3,
All machines have a life of 10 years, and MARR = 15%. Using incremental rate of return analysis, which alternative, if any, should the company choose?
Answered Same Day Dec 24, 2021

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Robert answered on Dec 24 2021
124 Votes
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