Question: Koether Inc., located in Dunlap, Tennessee is considering two different makes of blow molding machines for one of its automotive products. The cost data for

Koether Inc., located in Dunlap, Tennessee is considering two different makes of blow molding machines for one of its automotive products. The cost data for the two alternatives are provided in table below. Using an MARR =12%, conduct an incremental analysis to see which Machine, if any, should be selected.

	Machine X	Machine Y
Initial cost	$160K	$285K
Annual operating cost	45K	45K
Benefits /Year	90K	105K
Salvage value	20K	40K
Life	10 Years

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