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A Model A air compressor costs TZS 5 0 , 0 0 0 , 0 0 0 to buy and costs TZS 2 5 ,

A Model A air compressor costs TZS

50, 000, 000

to buy and costs TZS

25, 000, 000

per year to operate over its

10

year life. A Model B air compressor costs TZS

75, 000, 000

to buy and costs TZS

17, 500, 000

per year to operate. Which air compressor Model has the lowest Life Cycle Cost at a

10 %

discount rate?

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