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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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