Question: Handwritten submittals will not be accepted. Problem: A diagnostics laboratory is considering one of the following microscopes with digital recording and pattern detection software: Option

Handwritten submittals will not be accepted.

Problem:

A diagnostics laboratory is considering one of the following microscopes with digital recording and pattern detection software:

Option AOption BOptions CCost$20,000$30,000$15,000

Savings

$1,199$2,199$2,000Interest6%9%7%

Each machine will have a 20-year life with no salvage value. There is a lot of debate within the company as to whether these devices are really going to last long, but they assume MARR of 10% as reasonable.

Calculate Present Worth for all Options showing your calculations

Calculate IRR for all options showing your calculations

Which Option do you recommend and why?

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