Unformatted text preview: and has an annual operating cost of $4800. Each machine has an economic life of 10 years. If the minimum rate of return is 10 percent, compare the advantages of machine A by [a] the present worth method, [b] the annual cost method and [c] the rate of return on investment. Dieter Exercise 13.15 At what mileage is it cheaper to provide your field representatives with cars than to pay them $0.32 per mile for the use of their own cars? The costs of furnishing a car are as follows: Purchase price $9000 Life 4 years Salvage $1500 Storage $150 per year Maintenance $0.08 per mile [a] assume i = 10 percent [b] assume i = 16 percent...
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 Spring '08
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 Future Value, Net Present Value, Dieter Exercise

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