A thermoplastic film manufacturer is trying to decide between four types of thermoforming molding processes to be added to its molding operation. The estimated costs and revenue are shown below. Compare them on the basis of rate of return and determine which process should be selected if the company's MARR is 6% per year.
$$\begin{array} { l | c | c | c | c }
\hline \text { rrnative } & \begin{array} { c }
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$ $$\begin{array} { l | c | c | c | c }
\hline \text { rrnative } & \begin{array} { c }
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$ $$\begin{array} { l | c | c | c | c }
\hline \text { rrnative } & \begin{array} { c }
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c }
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$

Question

A thermoplastic film manufacturer is trying to decide between four types of thermoforming molding processes to be added to its molding operation. The estimated costs and revenue are shown below. Compare them on the basis of rate of return and determine which process should be selected if the company's MARR is 6% per year.
 $$\begin{array} { l | c | c | c | c } 
\hline \text { rrnative } & \begin{array} { c } 
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$ $$\begin{array} { l | c | c | c | c } 
\hline \text { rrnative } & \begin{array} { c } 
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$ $$\begin{array} { l | c | c | c | c } 
\hline \text { rrnative } & \begin{array} { c } 
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of A thermoplastic film manufacturer is trying to decide between four types of thermoforming molding processes to be added to its molding operation. The estimated costs and revenue are shown below. Compare them on the basis of rate of return and determine which process should be selected if the company's MARR is 6% per year.
 $$\begin{array} { l | c | c | c | c } 
\hline \text { rrnative } & \begin{array} { c } 
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$ $$\begin{array} { l | c | c | c | c } 
\hline \text { rrnative } & \begin{array} { c } 
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$ $$\begin{array} { l | c | c | c | c } 
\hline \text { rrnative } & \begin{array} { c } 
\text { Vacuum } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Pressure } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Drape } \
\text { forming }
\end{array} & \begin{array} { c } 
\text { Free } \
\text { blowing }
\end{array} \
\hline \text { ial costs } & \$ 31,000 & \$ 51,000 & \$ 43,000 & \$ 45,000 \
\hline \text { rual expenses } & \$ 3300 & \$ 3000 & \$ 3200 & \$ 3800 \
\hline \text { iual revenue } & \$ 7300 & \$ 11,000 & \$ 9700 & \$ 10,800 \
\hline \text { age value } & \$ 3100 & \$ 5100 & \$ 4300 & \$ 4500 \
\hline \text { years } & 8 & 8 & 8 & 8 \
\hline ( \% ) & 2.66 & 6.87 & 6.03 & 6.68 \
\hline
\end{array}$$

A Thermoplastic Film Manufacturer Is Trying to Decide Between Four