A contractor is deciding between two different brands of excavators to purchase. The cash flow for each brand is shown below,

determine the volume of soil that should be excavated per year so that Excavator A is the more economical alternative. Assume an interest rate of 10% per year.

a.

Less than 4730.9 m3 per year.

b.

More than 5309.5 m3 per year.

c.

Less than 5176.9 m3 per year.

d.

More than 3074.9 m3 per year.

e.

More than 2314.7 m3 per year

First Cost, $ Annual Operating cost, $ Cost to Operate, $ per hour Volume of Soil Excavated, ma per hour Salvage Value, $ Useful life, years Excavator A Excavator B 26500 20000 1200 1550 16 15 75 50 13000 10000 15 15