Wayward Airfreight, Inc. has asked you to recommend a new automatic parcel sorter. You have obtained the

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Wayward Airfreight, Inc. has asked you to recommend a new automatic parcel sorter. You have obtained the following bids:

SORT-OF U-SORT-M SHIP-R $184,000 $235,000 $180,000 First cost Salvage value 38,300 44,000 14,400 Annual benefit 75,300 8

Using an MARR of 15% and a rate of return analysis, which alternative, if any, should be selected?

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...

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Engineering Economics

ISBN: 9780195168075

9th Edition

Authors: Ted G. Feller

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Question Posted: Feb 25, 2010 04:48 AM

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Wayward Airfreight, Inc. has asked you to recommend a new automatic parcel sorter. You have obtained the

Question:

SORT-OF U-SORT-M SHIP-R $184,000 $235,000 $180,000 First cost Salvage value 38,300 44,000 14,400 Annual benefit 75,300 89,000 68,000 Yearly maintenance 21,000 21,000 12,000 And operating cost Useful life, in years

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Put the four alternatives in order of increasing cost Do nothing USortM ShipR ...View the full answer

Engineering Economics

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