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An engineering company is evaluating two different options for buying a triaxial testing machine. The expected cash flow for two different options and other required
An engineering company is evaluating two different options for buying a triaxial testing machine. The expected cash flow for two different options and other required data are given in Table. By considering data given in Table, which option should be preferred by the engineering company. Give all calculation steps. First Annual Annual Salvage Economic value (TL) | life (year) revenue cost operating (TL) cost (TL) Option-A 120000 14000 Option-B 150000 10000 Interest rate=0.05 (TL) 50000 30000 5 60000 35000 5 Discount rate=0.05
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