A centrifuge is required in a chemical separation process. Two centrifuges (A and B) are available and

Question:

A centrifuge is required in a chemical separation process. Two centrifuges (A and B) are available and summarized below. The net annual revenues for centrifuge B are not known. If the is 10% per year and s can be ignored, what is the minimum value of X to make centrifuge B the better choice? Select the closest answer below.

Year Centrifuge A Centrifuge B -$25,000 $X -$30,000 $8,000 1-5

(a) $500

(b) $6,700

(d) $9,800

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