Three machines have been selected for comparison by a manufacturing company. Their data is tabulated below. The company is using an investment MARR of 20%.

Using Equivalent Uniform Annual Worth method of analysis, determine the Incremental Rate of Return for the machine, which should be selected.

Show work, not spreadsheet.

Machine         A,                   B ,                      C

Cost             $260,000          $130,000            $185,000

O&M/yr         $18,000            $80,000             $45,000

Revenue/yr    $150,000          $150,000            $150,000

Salvage        $105,000           $35,000              $56,000

Life               4                     4                        4