Question: There are five alternative machines to do a given job. Each is expected to have a market value of 100% of the investment amount at

There are five alternative machines to do a given job. Each is expected to have a market value of 100% of the investment amount at the end of its life of 4 years. The firm's minimum attractive rate of return is 12%. Analyze the sensitivity of the best choice die to the salvage value ranging from 0% to 100% of the initial investment.

	Machines
	A	B	C	D	E
Investment	$ 10,000	$ 14,000	$ 21,000	$ 27,000	$ 34,000
Net Cash Flow per Year	1,100	1,800	2,800	3,400	4,450

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