The manager of a canned-food processing plant has two labeling machine options. On the basis of a rate of return analysis with a MARR of 20% per year, determine

(a) Which model is economically better,

(b) If the selection changes, provided both options have a 4-year life and all other estimates remain the same.

Transcribed Image Text:

Model First cost, $ |AOC, $ per year Salvage value, $ 105 200 -15,000 -25,000 -1,600 -400 4,000 3,000 2 |Life, years 4