Either of the cost alternative shown below can be used in a manufacturing process. Tabulate the...

 

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Either of the cost alternative shown below can be used in a manufacturing process. Tabulate the incremental cash flows using rate of return method. MARR=15% Use tables to help you solve the problem. Hint: F=n*A+F A B Capital investment -$40,000 -$60,000 Annual expenses -$25,000 -$19,000 Salvage 8000 10000 Useful life (years) 5 5 1. Draw the cash flow diagram 2. Write out rate of return equation (just the equation before work) 3. Use equation to find the factor that leads to the first interest rate 4. Solve the two equation for both interest for the final answer. Either of the cost alternative shown below can be used in a manufacturing process. Tabulate the incremental cash flows using rate of return method. MARR=15% Use tables to help you solve the problem. Hint: F=n*A+F A B Capital investment -$40,000 -$60,000 Annual expenses -$25,000 -$19,000 Salvage 8000 10000 Useful life (years) 5 5 1. Draw the cash flow diagram 2. Write out rate of return equation (just the equation before work) 3. Use equation to find the factor that leads to the first interest rate 4. Solve the two equation for both interest for the final answer.