8. Austin General Hospital is evaluating new lab equipment. The interest rate is 12% and in each case the equipment's useful life is 5 years. Use NPW analysis to pick which company you should purchase from. Answer Company First cost O & M costs Annual benefit Salvage value A $13,500 1,500 9,500 3,500 B $20,000 1,800 11,000 6,000 C $15,000 1,100 9,000 4,000

Austin General Hospital is evaluating new lab equipment. The interest rate is 12% and in each case the equipment's usefullife is 5 years. Use NPW analysis to pick which company you should purchase from