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A client is deciding between two separate turbines. Turbine 1 has a life of 25 years, an initial cost of $50,000, an ongoing maintenance/electricity
A client is deciding between two separate turbines. Turbine 1 has a life of 25 years, an initial cost of $50,000, an ongoing maintenance/electricity cost totaling $1,000 per year. Turbine 2 has a life of 25 years, an initial cost of $35,000 and an ongoing maintenance/electricity cost totaling $1,500 per year. Assume the interest rate is equal to 4%. Which one would you suggest the client choose? O Turbine 1 O Turbine 2
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To determine which turbine is more costeffective we can calculate the net present value NPV ...
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Managing Supply Chain and Operations An Integrative Approach
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
1st edition
132832402, 978-0132832403
