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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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