Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 24

The E. F. Fedele Company is considering acquiring an automatic screwing machine for its assembly operation of a personal computer. Three different models with varying automatic features are under consideration. The required investments are $360,000 for model A, $380,000 for model B, and $405,000 for model C. All three models are expected to have the same service fife of eight years. The financial information from Table, in which model (B A) represents the incremental cash flow determined by subtracting model A's cash flow from model B's, is available.
If the firm's MARR is known to be 12%, which model should be selected
TABLE 52