Question: You am trying to decide which machine to purchase for our manufacturing plant. Machine 1 will cost $350,000, last 5 years, and will generate variable

You am trying to decide which machine to purchase for our manufacturing plant. Machine 1 will cost $350,000, last 5 years, and will generate variable costs of $2.50 per part. Machine 2 will cost $565,000, last 5 years, and will generate variable costs of $1.83 per part. What level of production would Machine 1 be best? Our company likes to get an ROI of 22%.

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