Question
The manager of engineering at the 900 megawatt Hamilton Nuclear Power Plant has three options to supply personal safety equipment to employees. Two are vendors
The manager of engineering at the 900 megawatt Hamilton Nuclear Power Plant has three options to supply personal safety equipment to employees. Two are vendors who sell the items, and a third will rent the equipment for $50,000 per year, but for no more than 3 years per contract. These items have relatively short lives due to constant use. The MARR is 10 % per year
| Vendor R | Vendor T |
Initial cost, $ | -75000 | -125000 |
Annual upkeep cost, $/year | -27000 | -12000 |
Annual rental cost, $ per year | 0 | 0 |
Salvage value, $ | 0 | 30000 |
Estimated life, years | 3 | 5 |
Select from the two sales vendors using the LCM and PW Analysis
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