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The Company must choose between two types of cranes. Crane A costs $700,000, will last for five years, and will require $60,000 in maintenance each
The Company must choose between two types of cranes. Crane A costs $700,000, will last for five years, and will require $60,000 in maintenance each year. Crane B costs $800,000, will last for seven years, and will require $45,000 in maintenance each year. Maintenance costs for cranes A and B occur at the end of each year. The appropriate discount rate is 9% per year. Which machine should Company purchase?
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