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A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as following: Vendor A has a first cost of $15,000, an annual
A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as following: Vendor A has a first cost of $15,000, an annual operating cost of $3,500, a salvage value of $1000, and a service life of 6 years. Vendor B has a first cost of $18,000, an annual operating cost of $3,100, a salvage value of $2,000, and a service life of 9 years. The vendor should be selected & present worth is: Use MARR 15% -$41,384, B -$40,595, A $45,036, A -$39,077, B
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