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Coffee R Us is a new venture hoping to create and sell new varieties of iced coffee. They need a water storage system. Two systems
"Coffee R Us" is a new venture hoping to create and sell new varieties of iced coffee. They need a water storage system. Two systems are in contention.
System A is a storage tank with an initial cost of $450,000 and maintenance of $5000 annually. System B is a holding pond costing $160,000 to create and $$98,000 for pumps and piping. In addition, the pond system will require operating and maintenance of $1600 per year. MARR is 18%.
Using present worth of each system, determine which system is best for the company.
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