- 6 The Croc Co Is Considering A New Milling Machine They Have Narrowed The Choices Down To Three Alternatives In Addit 1 (25.93 KiB) Viewed 71 times
6. The CROC Co. is considering a new milling machine. They have narrowed the choices down to three alternatives in addition to the Null alternative. The relevant data are shown in the table below. 15 pts Alternative Economy Regular Deluxe First Cost $70,000 $115,000 $200,000 Annual Benefit $28,000 $43,000 $90,000 M&O Costs $7,000 $11,000 $35,000 Salvage Value $13,000 $14,000 $16,000 All machines have a life of 6 years. Using incremental rate of return analysis, which alternative should the company choose? Use a MARR of 12%. 15 pts