Three industrial teams (small, medium, large) are being evaluated for acquisition Use the following information to perform the economic analysis by Benefit Cost and determine which is the best alternative The company uses a MARR of 7 to evaluate its investments Small Medium Large Inicial Inversion $1,500 $2,000 $5,000 Cost's operation hr $35 $50 $76 Income hr $55 $75 $100 Hours in funtion per year 1,000 1,100 1,200 Useful life 2 years 3 years 5 years Residual value 0 $150 $760 a) In which of the equipment should you invest b)What is the benefit cost ratio of the equipment with the WORST Benefit Cost ratio

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Question: Three industrial teams (small, medium, large) are being evaluated for acquisition. Use the following information to perform the economic analysis by Benefit / Cost and

Three industrial teams (small, medium, large) are being evaluated for acquisition. Use the following information to perform the economic analysis by Benefit / Cost and determine which is the best alternative. The company uses a MARR of 7% to evaluate its investments:

	Small	Medium	Large
	Small	Medium	Large
Inicial Inversion	$1,500	$2,000	$5,000
Cost's operation/hr	$35	$50	$76
Income/hr	$55	$75	$100
Hours in funtion per year	1,000	1,100	1,200
Useful life	2 years	3 years	5 years
Residual value	0	$150	$760

a) In which of the equipment should you invest? b)What is the benefit / cost ratio of the equipment with the WORST Benefit / Cost ratio?

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