Which one should be selected on the basis of a rate of return analysis if the companys MARR is 15% per year?

A small manufacturing company is considering expanding its operation by adding new pro Show more Question 13 A small manufacturing company is considering expanding its operation by adding new product lines. Any or all of the product lines shown below can be added. If the company uses a MARR of 15% per year and a 5-year project period which products if any should the company manufacture? Product 1 2 3 4 Initial cost $ -340000 -500000 -570000 -620000 Annual cost $/year -70000 -64000 -50000 40000 Annual savings $/year 180000 190000 220000 205000 Work out the solutions longhand (below) Question 14 A mechanical engineer is considering two robots for improving materials handling in the production of rigid shaft couplings that mate dissimilar drive components. Robot X has a first cost of $84000 an annual maintenance and operation (M&O) cost of $31000 a $40000 salvage value and will improve net revenues by $96000 per year. Robot Y has a first cost of $146000 an annual M&O cost of $28000 a $47000 salvage value and will increase net revenues by $119000 per year. Which one should be selected on the basis of a rate of return analysis if the companys MARR is 15% per year? Use a three-year study period. Use Excel to create a table and solve the problem. List your answer below. Show less

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