Question: Hand-Calculation Please and Thank you Multiple Alternative (More than Two) Evaluation Four different machines were under consideration for materials flow improvement on a drug bottling

Hand-Calculation Please and Thank you
Multiple Alternative (More than Two) Evaluation Four different machines were under consideration for materials flow improvement on a drug bottling line. An engineer performed the economic analysis to select the best machine, but some of his calculations were removed from the report by a disgruntled employee. All machines are assumed to have a 10-year life (a) Fill in the missing values in the comparison table (b) Select the best machine at MARR-18% per year, provided one must be chosen Machlne Initial cost, S Annual cost ?-60,000-72,000 -98,000 0,000 -64,000-61,000-58,000 +80,000 +80,000 +80,000 +82,000 S per year Annual savings, S per year Overall ROR. i*, % Machines compared Incremental 18.5% 23.1% 2 vs. 3vs. 2 4 vs. 3 20.8% investment, S 16,000 ? 26,000 Incremental cash flow, S per year ROR on increment, +6,000 +3,000 ? 35.7%
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