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Ralph's Donut Studios is considering the purchase of a new dough kneading system. There are two options. The KRISPY 7 costs $15,000 today, will cost

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Ralph's Donut Studios is considering the purchase of a new dough kneading system. There are two options. The KRISPY 7 costs $15,000 today, will cost $1,100 per year for eleven years to operate and will be sold for $4,000 in eleven years. The DUNKIN4 costs $21,000 today, will cost $850 per year for thirteen years to operate and will be sold for $4,000 in thirteen years. The equivalent annual cost of the best choice is at $ Use a discount rate of 8% p.a. DUNKIN4 / 3320.87 DUNKIN4 / 4312.83 KRISPY7 / 2960.84 KRISPY7 / 3115.21 Insufficient information to

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