Role of quality and time factors in making decision


Quality and Time Factors

Response to the following problem:

Tucker Yard Service Company is contemplating purchasing a new riding lawnmower for its business. One particular model has special features that enhance the cutting and the collecting of the mowed grass, but that mower is quite expensive. Another model is more basic and costs $1,000 less. The payback period on the more expensive model is estimated to be 3.5 years and on the less expensive model 2.5 years. The "bumper-to-bumper" warranties are two years and one year, respectively. From these limited data, what factors should Tucker consider in making this decision?

 

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Financial Accounting: Role of quality and time factors in making decision
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