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:

Company Company Company First cost $15,000 $25,000 $20,000 Maintenance 1,600 400 900 and operating 9,000 Annual benefit

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

Company Company Company First cost $15,000 $25,000 $20,000 Maintenance 1,600 400 900 and operating 9,000 Annual benefit 8,000 13,000 Salvage value 3,000 6,000 4,500 Useful life, 4 4 4 in years

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