Question

3.1. An equipment costing $60,000 is being evaluated for a production process at Don Jones Co.The expected benefits per year is $4,500 and estimated salvage value is $20,000. Determine the

rate of return the company can get in this equipment proposal. Equipment life = 20 years. Please note you need to show the steps for getting full credit. Just selecting the correct option without showing the steps will result in getting zero points. A) 4.92%B) 5.96%C) 5.62%D) None of the options Kruber company located Tennessee is considering two different makes of a blow molding machine for one of its automotive products. The cost data for the two alternatives are provided in table below. MARR =12%. Please note you need to show the steps for getting full credit. Just selecting the correct option without showing the steps will result in getting zero points. A) Machine XB) Machine Y

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