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A company is in the dilemma of which equipment to acquire for its production process, there are two alternatives, the Delta Equipment and the Gamma
A company is in the dilemma of which equipment to acquire for its production process, there are two alternatives, the Delta Equipment and the Gamma team. It is known that both teams will provide the same service, but that they have different investment and operational costs, in addition to different useful life. The Delta Equipment has a purchase value of US $ 180,000 and will require personnel for an annual cost of US $ 40,000 and maintenance for US $ 10,000 every year. The Gamma Equipment has a purchase value of US $ 280,000 and will require personnel for an annual cost of US $ 34,000 and maintenance for US $ 20,000 every two years. The useful life of the Delta Equipment will be 4 years and will have no scrap value at the end of those 4 years. For its part, the Gamma Equipment will have a useful life of 6 years, at the end of which it is believed it can be sold for US $ 35,000. REQUESTED: Determine what Equipment the company should buy, considering an opportunity cost of 14%
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