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The energy-efficient washer and dryer set costs $ 3,180, has a 12 year life and incurs an average $210 cost per year in the electricity
The energy-efficient washer and dryer set costs $ 3,180, has a 12 year life and incurs an average $210 cost per year in the electricity consumption. The regular washer and dryer set costs $1,980, has a 8 year life and incurs $320 cost per year in the electricity consumption. Given the rate of return is 8%, Which washer and dryer set would you recommend to purchase and why? Select one: O a. The energy-efficient set because its equivalent annual cost is lower than the regular set. O b. The regular set because its equivalent annual cost is lower than the energy-efficient set. O c. The regular set because its NPV is less negative. Od. . . The energy efficient set because its NPV is less negative. Cannot be determined because the two sets of washer and dryer have different life span.
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