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Determine which is better- investing in Burnout batteries or Long-lasting batteries. Use the assumptions given below: Burnout batteries Long-lasting batteries Initial cost: $36 each Life:

Determine which is better- investing in Burnout batteries or Long-lasting batteries. Use the assumptions given below: Burnout batteries Long-lasting batteries Initial cost: $36 each Life: 3 years Depreciation: straight-line Salvage value: $5 Annual expense: $100 per year to keep charged Tax rate: 30% Required return: 15% Initial cost: $60 each Life: 5 years Depreciation: straight-line Salvage value: $5 Annual expense: $88 per year to keep charged Tax rate: 30% Required return: 15%

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