Question 6 (10 points)

The machines shown below are under consideration for an improvement to an automated candy bar wrapping process.

	Machine C	Machine D
First cost, $	50,000	65,000
Annual cost, $/year	9,000	10,000
Salvage value, $	12,000	25,000
Life, years	3	6

(Source: Blank and Tarquin)

Based on the data provided and using an interest rate of 8% per year, the Capital Recovery CRof Machine D is closest to:

(All the alternatives presented below were calculated using compound interest factor tables including all decimal places)

Question 6 options:

	CRD= $12,698
	CRD= $17,469
	CRD= $10,653
	CRD= $14,061