Question
You have to purchase a furnace for your factory. Easy Heat furnaces cost $4,000 to purchase. The cost to run the furnaces is $1,800 per
You have to purchase a furnace for your factory. Easy Heat furnaces cost $4,000 to purchase. The cost to run the furnaces is $1,800 per year. Easy Heat furnaces last for 5 years. Hot Heat furnaces cost $6,000 to purchase. The cost to run the furnaces is $1,000 per year. Hot heat furnaces last 10 years. The discount rate is 18 percent. Which furnace should you purchase?
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Introductory Econometrics For Finance
Authors: Chris Brooks
3rd Edition
1107661455, 9781107661455
