Question
The plastic company is trying to decide whether to use machine A or B in its plant. The company uses a 15% MARR Machine A
The plastic company is trying to decide whether to use machine A or B in its plant. The company uses a 15% MARR
Machine A has an initial cost of SR 150,000, requires annual maintenance costs of SR 15,000, and will last 10 years.
Machine B costs SR 250,000, requires SR 8,000 annual maintenance, and will last 20 years
Question 1
Assume the company has annual revenue of SR 20,000. Which option the company should choose to recover its initial cost:
a) without considering time value of money,
b) with considering the time value of money.
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The International Handbook Of Public Financial Management
Authors: Richard Allen, Richard Hemming, B. Potter
1st Edition
1137574895, 978-1137574893
