Question
A company must decide whether to buy Machine A or Machine B. A B First cost $9,000 $17,000 Annual maintenance $1,000 $450 Salvage value $4,000
A company must decide whether to buy Machine A or Machine B.
A B First cost $9,000 $17,000 Annual maintenance $1,000 $450 Salvage value $4,000 $9,000 Useful life, in years 4 10
(a) What is the equivalent uniform annual cost (EUAC) of Machine A?
(b)What is the equivalent uniform annual cost (EUAC) of Machine B?
(c)Which machine should one choose?
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Project Finance In Construction
Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani
1st Edition
1444334778, 978-1444334777
