Question
Which equipment is preferred if the firms interest rate is 15%? In PW terms how great is the difference? Alternative A B First cost $45,000
Which equipment is preferred if the firms interest rate is 15%? In PW terms how great is the difference?
Alternative A B
First cost $45,000 $35,000
Annual O&M 3,900 4,200
Salvage value 0 5,000
Overhaul (Year 6) 10,000 Not required
Life, in years 10 5
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
26th edition
128574361X, 978-1305446052, 1305446054, 978-1285743615
