A tool and die company in Hanover is considering the purchase of a drill press with fuzzy-logic software to improve accuracy and reduce tool wear. The company has the opportunity to buy a slightly...

Using ror method calculate which one is more profitable for the company marr is 10%?

Extracted text: A tool and die company in Hanover is considering the purchase of a drill press with fuzzy-logic software to improve accuracy and reduce tool wear. The company has the opportunity to buy a slightly used machine for $15,000 or a new one for $21,000. Because the new machine is a more sophisticated model, its operating cost is expected to be $7000 per year, while the used machine is expected to require $8200 per year. Each machine is expected to have a 25-year life with a 5% salvage value. Using ROR method, calculate which one is more profitable for the company MARR is 10 %