Question: Please show all work done to get answer step-by-step, showing the work done The Detroit MicroBrews Corp. is opening a new production facility. Two types

Please show all work done to get answer step-by-step, showing the work done

The Detroit MicroBrews Corp. is opening a new production facility. Two types of stills are being considered and the cost estimates in the table below have been developed. Using ROR analysis, determine which alternative should be selected (if any). Use a MARR of 15%.

MASHER

SQUEEZER

Life, Years

4

6

First Cost

$10,000

$15,000

Salvage Value

0

2,000

Maintenance & Operating Cost (Year 1)

800

1,000

Maintenance & Operating Cost arithmetic gradient increment above year 1 cost (starting 2nd year)

200

400

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