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The local dry - cleaning store needs to replace their existing series of dry - cleaning machines which have become too costly to maintain. They
The local drycleaning store needs to replace their existing series of drycleaning machines which have become too costly to maintain. They are considering two different alternatives for the replacement decision. The first option is the EazyClean model, which will cost $ today, has an annual operating cost of $ and will last for years. The second option is the Fibramatic Saver Series which costs $ today, but uses activated clay filtration instead of distillation and therefore much less energy than conventional methods. This series will have annual operating costs of only $ and will last for years. The dry cleaning store must always have a set of machines in operation to service their customers. Assume that the appropriate discount rate is which option would you recommend to the owner??
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