A beverage factory wants to buy a scale to make sure the bottles are filled in the
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Question:
A beverage factory wants to buy a scale to make sure the bottles are filled in the correct quantities. The ideal balance prevents overflowing from the bottle (economic loss) and makes sure there is the same amount of beverage in every bottle. There are price differences and other advantages between the two scales due to the weighing speed and other reasons. If the two scales below have a useful life of 6 years and an interest rate of 8%, which firm's scale should the beverage factory buy?
Alternatives | Sale price | Uniform Annual Return | End of Life Scrap Value |
Brother-in-law weigh inc. | 2000 $ | 450 $ | 100 $ |
Bride-sister weigh inc. | 3000 $ | 600 $ | 700 $ |
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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