The following annual costs are associated with three new extruder machines being considered for use...
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The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant:
The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data Useful Life, Years First Cost Salvage Value Annual Benefit M&O M&O Gradient SUPR-X 13 $2,870,000 $90,000 $702,000 $56,000 $13,000 X-TRUD $2,080,000 $97,000 $250,000 $65,000 $10,500 $2,980,000 $103,000 $666,000 $70,000 $16,000 The company's interest rate (MARR) is 2%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason Choosing SUPR-X is best because it has the highest Annual Benefht Choosing SUPR-X will maximize the EUAB-EAUC; its value is $478,837 higher than X and $101,691 higher than X-TRUD Choosing SUPR-X will maximize the EUAB-EAUC; its value is $17,837 higher than X and $51,691 higher than X-TRUD Choosing SUPR-X is best because it has the lowest M&O cost in yr1 The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data Useful Life, Years First Cost Salvage Value Annual Benefit M&O M&O Gradient SUPR-X 13 $2,870,000 $90,000 $702,000 $56,000 $13,000 X-TRUD $2,080,000 $97,000 $250,000 $65,000 $10,500 $2,980,000 $103,000 $666,000 $70,000 $16,000 The company's interest rate (MARR) is 2%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason Choosing SUPR-X is best because it has the highest Annual Benefht Choosing SUPR-X will maximize the EUAB-EAUC; its value is $478,837 higher than X and $101,691 higher than X-TRUD Choosing SUPR-X will maximize the EUAB-EAUC; its value is $17,837 higher than X and $51,691 higher than X-TRUD Choosing SUPR-X is best because it has the lowest M&O cost in yr1
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