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Manufacturing needs fo purchase a new air conditioning system for a plant. The first system coste 100,000 dollars and is expected to last 10 years.
Manufacturing needs fo purchase a new air conditioning system for a plant. The first system coste 100,000 dollars and is expected to last 10 years. The second system costs 71000 and is expected to last 15000 years. assume that the company cost of capital is 10 percent. What are the equivalent annual costs for each company and which should they chose?
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