A company that manufactures amplified pressure transducers wishes to decide between the machines shown—variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 15% per year.
 FIGURE 1.png)
Write PW-based incremental ROR equation using CFVS – CFDS
0 = -25,000 + 4000(P/A,?i*,6) + 26,000(P/F,?i*,3) – 39,000(P/F,?i*,4)
+ 40,000(P/F,?i*,6)
?i* = 17.4% (spreadsheet)
?i* > MARR of 15%; select Variable Speed (VS)
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