Question: Should Machine x or machine y be bought? I think the Answer is y but Im not sure Kruber company located Tennessee is considering two

Should Machine x or machine y be bought? I think the Answer is y but Im not sure

Should Machine x or machine y be bought? I think the Answer

Kruber company located Tennessee is considering two different makes of a blow molding machine for one of its automotive products. The cost data for the two alternatives are provided in table below. MARR =12%. Machine Machine IX Y Initial cost $150K $275K Annual 55K 60K operating cost Benefits /Year 100K 120K Salvage value 20K 40K Life 10 Years

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