Ashley Foods, Inc. has determined that only one of five machines can be used in one phase of its dairy products operation. The first and annual costs are estimated; all machines are expected to have a...

Ashley Foods, Inc. has determined that only one of five machines can be used in one phase of its dairy products operation. The first and annual costs are estimated; all machines are expected to have a 4-year useful life. If the MARR is 20% per year, determine which machine should be selected on the basis of rate of return.

Extracted text: Machine First Cost, $ AOC, $ per year 1 -31,000 - 16,000 - 19,300 - 17,000 - 12,200 - 15,500 -29,000 3 -34,500 4 -49,000 -41,000