Question
Manufacturing needs to purchase a new central air-conditioning system for a plant. There are two choices. The first system costs $66,000 and is expected to
Manufacturing needs to purchase a new central air-conditioning system for a plant. There are two choices. The first system costs $66,000 and is expected to last 10 years, and the second system costs $67,000 and is expected to last 15 years. Assume that the opportunity cost of capital is 10 percent. Which air-conditioning system should you purchase?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
