Selecting Alternative Machines or Equipment’s | Industries

Several common methods used for evaluating proposals for capital expenditures and for comparing and selecting alternative machines or equipment involving capital assets are discussed:- 1. Total life average method, 2. Annual cost method, 3. Present worth method, 4. Rate of return method, 5. MAPI method, and 6. Approximate MAPI solution. 1. Total Life Average Method: Steps Involved: (i) Add the [...]