Consider two mutually exclusive alternatives as shown in the table 1.0.

MARR is 20% and the study

period is 8 years.

Machine

RM10,914.00
RM35,988.00
Formatic D12000 Burger Machine - Formatic C4000 Burger Machine - Windsor
Windsor Food Machinery Food Machinery
Initial RM35,988.00 RM10,914.00
cost
Annual RM15,000.00 RM11,000
receipts
Annual RM8500.00 RM4500.00
costs
Salvage RM10,000.00 RM1000.00
value
life 12 years 7 years