(c) A contractor has been awarded a job that requires procurement of an equipment. Two brands A and B are available to perform the job. Brand A requires an investment of Rs. 4,50,000, while brand B requires an investment of Rs. 7,25,000. The annual savings generated by brands A and B are given below. Which brand of equipment should the contractor chose if the interest rate is 8%? Savings details (in Rs) yearwise Option Brand A Brand B. 1st year 225000 300000 2nd year 225000 300000 3rd year 225000 300000
(c) A contractor has been awarded a job that requires procurement of an equipment. Two brands A and B are available to perform the job. Brand A requires an investment of Rs. 4,50,000, while brand B requires an investment of Rs. 7,25,000. The annual savings generated by brands A and B are given below. Which brand of equipment should the contractor chose if the interest rate is 8%? Savings details (in Rs) yearwise Option Brand A Brand B. 1st year 225000 300000 2nd year 225000 300000 3rd year 225000 300000
Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter18: Life-cycle Costing
Section: Chapter Questions
Problem 4RQ
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Transcribed Image Text:(c) A contractor has been awarded a job that requires procurement of an equipment.
Two brands A and B are available to perform the job. Brand A requires an investment
of Rs. 4,50,000, while brand B requires an investment of Rs. 7,25,000. The annual
savings generated by brands A and B are given below. Which brand of equipment
should the contractor chose if the interest rate is 8%?
Savings details (in Rs) yearwise
Option
Brand A
Brand B
1st year
225000
300000
2nd year
225000
300000
3rd year
225000
300000
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