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The design team has narrowed its mechanical system options to the following two choices. Both meet the technical and performance requirements necessary for the project,
The design team has narrowed its mechanical system options to the following two choices. Both meet the technical and performance requirements necessary for the project, making the final decision based on economics. Given the following data, which option would you recommend, and why? Option 1 Option 2 Initial purchase price $200,000.00 $250,000.00 Annual Maintenance and operation costs $25,000.00 $20,000.00 Salvage value (after 15 years) $25,000.00 $30,000.00 Cost of money 8% 8%
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