Determine which fan is the most economical


Please help with the following problem.

Problem: Tenders received from manufacturers indicate that a fan priced at $170,000 will cost $220,000 per year to run, whilst a fan costing $265,000 will require $190,000 per year in operating costs. If the costing period is five years with an annual interest rate of 7%, determine which fan is the most economical.

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Finance Basics: Determine which fan is the most economical
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