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Ashley Foods, Inc. has determined that any one of five machines can be used...

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Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chilli canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4- year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected based on a rate of return analysis.

NOTE: Please show working out no use of Excel Spreadsheet as I want to understand the concept better.

Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chilli canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4-year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected based on a rate of return analysis. Machine 1 2 Annual Operating First Cost, $ Cost, Sper Year -31,000 -16,000 -29,000 -19,300 -34,500 - 17,000 -49.000 -12,200 -41,000 -15,500 4 5

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