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 4 ?-60,000-72,000 -98,000 70,000-64,000-61,000 -58,000 +80,000 +80,000 +80,000 +82,000 $ per year Annual savings, $ per year 18.5% 23.1% 3 vs. 2 4 vs. 3 Overall ROR. i*, % 20.8% 2 vs. Machines compared investment, $ flow, $ per year Incremental -16,000 ? -26,000 Incremental cash +6,000 +3,000? 35.7% ROR on increment