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6 - 1 2 . Two pumps are being considered for a certain service of 1 0 years. The Toltec pump has a first cost
Two pumps are being considered for a certain service of years. The Toltec pump has a first cost of $ and an estimated annual cost of $ for electric energy used for pumping purposes. The Mandan pump has a first cost of $ Because it is less efficient, its annual costs for pumping energy will be $ higher than those of the Toltec pump Estimated annual income taxes will be $ higher with the Toltec pump. It is anticipated that there will be no other cost differences an no salvage values. What is the prospective aftertax rate of return on the extra investment required to purchase the Toltec pump?
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