Question: QZY, Inc. is evaluating new widget machines offered by three companies. The machines have the following characteristics: MARR = 15%. Using rate of return analysis,

QZY, Inc. is evaluating new widget machines offered by three companies. The machines have the following characteristics:

MARR = 15%. Using rate of return analysis, from which company, if any, should you purchase the widget machine?

Company Compy Company First cost Maintenance S15,000 $25.000 $20,000 900 1,600 400 and operating Annual benefit Salvage value Usetul life 8,000 3,000 13,000 6,000 9,000 4,500 4 in years

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