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A company purchased an 80-kw diesel electric unit six years ago with $160,000. At that time the cost index was 187 and it currently
A company purchased an 80-kw diesel electric unit six years ago with $160,000. At that time the cost index was 187 and it currently increased to 194. The cost-capacity factor for such equipment is 0.6. The company is currently considering either a 40- kW or 120-kW unit. Compute the cost of each alternative. You may need the following formula to solve the problem: In = (Cn/Ck) k CA SA == CB SB X
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
7th Canadian Edition
007090653X, 978-0070906532, 978-0071339575
