Exhibit 13-5 -Exhibit 13-5 Shows Data on the Various Dough-Mixing Machines That

Exhibit 13-5

-Exhibit 13-5 shows data on the various dough-mixing machines that a donut shop is considering buying. Assume that any dough-mixing machine is expected to last indefinitely, that operating expenses are negligible, and that the price of donuts is expected to remain constant in the future. If the market rate of interest is 8 percent, what size machine should the donut shop buy?

A) none
B) the machine with the one-quart bowl
C) the machine with the two-quart bowl
D) the machine with the three-quart bowl
E) the answer can't be determined from the given data