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A lab manager receives a quotation for a new equipment from two different companies: Company A: Initial cost $25,000 Annual I&M cost $400 Annual Benefit
A lab manager receives a quotation for a new equipment from two different companies:
Company A: Initial cost $25,000 Annual I&M cost $400 Annual Benefit $13,000 Salvage Value $6,000 Useful Life 4 years
Company B: Initial cost $20,000 Annual I&M cost $900 Annual Benefit $11,000 Salvage Value $4,500 Useful Life 4 years
if nominal interest rate is 15%, which Company will you recommend based on NPW analysis?
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