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BlueRidge Designs is considering the purchase of a security system. There are two options. The GEB7 costs $30,000 today, will cost $1,500 per year for
BlueRidge Designs is considering the purchase of a security system. There are two options. The GEB7 costs $30,000 today, will cost $1,500 per year for eleven years to operate and will be sold for $6,000 in eleven years. The SJB4 costs $42,000 today, will cost $1,400 per year for thirteen years to operate and will be sold for $7,500 in thirteen years. The equivalent annual cost of the best choice is $_______. Use a discount rate of 6% p.a.
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