Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 37

Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big commercial jobs. The costs associated with producing chemically- treated vinyl rollers and fiber-impregnated rubber rollers are shown below. Determine which of the two types should be selected by calculating the rate of return on the incremental investment. Assume the company's MARR is 21% per year. (Solve by hand and/or spreadsheet, as instructed.)