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Rollerblade, a maker of skating gear, is evaluating two alternative presses. Press A costs $ 8 8 , 0 0 0 , has a 4
Rollerblade, a maker of skating gear, is evaluating two alternative presses. Press A costs $ has a year life, and is expected to generate annual cash inflows of $ in each of the years. Press B costs $ has an year life, and is expected to generate annual cash inflows of $ in each of years. The cost of replacement for Press A is $ and the replacement press will generate cash inflows of $ for another years. Rollerblade uses a cost of capital. Which press should be chosen?
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