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The initial investment cost of machine A is 9,000 TL and the useful life of the machine is 6 years and the annual operating cost
The initial investment cost of machine A is 9,000 TL and the useful life of the machine is 6 years and the annual operating cost is 5,000 TL. The initial investment cost of machine B is 16.000 TL, and at the end of its 9-year useful life, the machine can be sold for 4.000 TL. Comparing the two machines according to the present value analysis based on the least common multiple of the alternative lifetimes of the machines, since the operating costs of machine B are TL 4,000 per year. (Interest rate 10% per annum)
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