Cmpare to units a and b a has a new cost of 42000 at life


Compare to units, A and B. A has a new cost of $42,000, at life expectancy of 14 years, a salvage value of $4,000, and an annual operating cost of $3,000. B has a new cost of $21,000, a life expectancy of 7 years, a salvage value of $2,000, and an operating cost of $5,000. Assume an annual interest rate of 7%. Which of the two units would you recommend? Why?

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Civil Engineering: Cmpare to units a and b a has a new cost of 42000 at life
Reference No:- TGS0657366

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