A company needs a machine that will produce widgets.They have found that there are only three machines available,with the following information:
Machine X - Capitalized cost = $73,692
Machine Y - Capitalized cost = $62,135,produces 15% fewer widgets than machine X
Machine Z - Capitalized cost = $88,930,produces 20% more widgets than machine X
>From a strictly financial point of view,rank the machines in the order: best,2^nd best,worst.

Question

Quizplus · Accepted Answer

Machine Y has the lowest capitalized cost and produces only 15% fewer widgets than Machine X, making it the most cost-effective. Machine X is the second best as it has a moderate cost and production rate. Machine Z, despite producing 20% more widgets than Machine X, has the highest capitalized cost, making it the least financially favorable.

A Company Needs a Machine That Will Produce Widgets