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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