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Which of the following two pumps should be purchased? The interest rate is 8%. How much better is the Equvalent Annual Cost (EAC) for the

Which of the following two pumps should be purchased? The interest rate is 8%. How much better is the Equvalent Annual Cost (EAC) for the recommended pump? What assumptions have you made?

Pump First Cost Annual Operating Costs Life
Brass $4,875 $1,925 6 years
Titanium $6,450 $1,730 9 years

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