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you want to buy a new machine and you are considering two different models. the first model costs 365$ to purchase, requires maintenance cost of
you want to buy a new machine and you are considering two different models. the first model costs 365$ to purchase, requires maintenance cost of 163$ per year, and lasts for 5 years. The second model costs 565$ requires a maintenance costs of 126$ per year, and lasts for 8years.The discount rate is %23
a) what is the equivalent annual cost of the first model?
b) what is the equivalent annual cost of the first model?
C) which one do you prefer? Why?
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