Question
You are purchasing a dishwasher for your new restaurant, and you are considering two specific models A and B: Model A: Noble 1-HH-NO o Price:
You are purchasing a dishwasher for your new restaurant, and you are considering two specific models A and B:
Model A: Noble 1-HH-NO
o Price: $5,029.00
o Uses 1.61 gallons of water per rack
o Can wash up to 39 racks per hour
Model B: CMA-180-VL
o Price: $8,167.80
o Uses 0.89 gallons of water per rack
o Can wash up to 40 racks per hour
Usage Assumptions:
o Assuming you need to wash 100 racks of dishes per day
o Your restaurant is open for 360 days a year
o Water rates = $3.82/hcf
o Sewer rates = $7.04/hcf
o 1hcf = 748 gallons
(1) Calculate the annual water and sewer costs associated with each model.
(2) How many years would it take for Model B to save enough water and sewer costs to be worth the price (compared with model A)?
(3) Which model would you purchase for your new restaurant? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer Lets start by calculating the annual water and sewer costs associated with each model For Model A 1 Water Usage per Day 100 racksday x 161 gall...
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
