QUESTION 3 Little Rhody Manufacturing needs to purchase a new central air-conditioning system for a plant. There
Fantastic news! We've Found the answer you've been seeking!
Question:
QUESTION 3
Little Rhody Manufacturing needs to purchase a new central air-conditioning system for a plant. There are two choices. The first system costs $70,000 and is expected to last 6 years, and the second system costs $102,000 and is expected to last 9 years. Assume that the opportunity cost of capital is 12 percent. Which air-conditioning system should you purchase?Show your work.
Expert Answer:
Posted Date:
