Problem
State University must choose between two new snow-removal machines. The Son-Blower has a $60,000 first cost, a 20-year life, and a $5000 salvage value. At the end of 9 years, the machine requires a major overhaul costing $14,000. Annual maintenance and operating costs are $8000. The Snooker will cost $40,000, has an expected life of 10 years, and has no salvage value. The annual maintenance and operating costs are expected to be $10,000. Using a 12% interest rate, which machine should be chosen?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.