Afirm is trying to decide which of two machines to install to reduce excessive costs of repairs due less reliable old machines. the new machines cost $1000 and have useful lives of five years, and no salvage value. machine a can be expected to result in $300 savings annually. machine b will provide cost savings of $400 the first year, but will decline $50 annually, making the second-year savings $350, the third year savings $300, and so forth. with interest at 7%, which machine should be purchased based on benefit-cost ratio?

TMachine B will be the most benefical.

Explanation:

1,000 5 year savings for $300

1,000 5 year saving of 400 and decreasing 50 per year

interest rate 7%

TIR first machine: 15,2382%

TIR second machine: 17,4663%

The better option would be the second machine, because it produce a better yield and therefore it will have a better NPV when calculate a 7% rate

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.