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Big Maple Corp. wants to buy a new, more efficient sawmill. After their market research they have found three possible options. Sawmill A would cost
Big Maple Corp. wants to buy a new, more efficient sawmill. After their market research they have found three possible options. Sawmill A would cost $115,000 today, enjoy annual savings of $65,000 and last for 5 years. Sawmill B would cost $325,000, enjoy annual savings of $78,000 and last for 9 years. Sawmill C would cost $378,000, enjoy annual savings of $76,000 and last for 12 years. Assuming a discount rate of 8.0%, which sawmill should Big Maple purchase? Add a File
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