he General Hospital is evaluating new office equipment offered by four companies. The useful life of the equipment is 4 years. Company A Company B Company C Company D First cost $15,000 $18,000 $25,000 $20,000 Maintenance and operating cost (annual) 1,600 1,100 400 900 Annual benefit 8,000 9,000 13,000 11,000 Salvage value 3,000 3,500 6,000 4,500 The internal rate of return for Company A is close to
he General Hospital is evaluating new office equipment offered by four companies. The useful life of the equipment is 4 years. Company A Company B Company C Company D First cost $15,000 $18,000 $25,000 $20,000 Maintenance and operating cost (annual) 1,600 1,100 400 900 Annual benefit 8,000 9,000 13,000 11,000 Salvage value 3,000 3,500 6,000 4,500 The internal rate of return for Company A is close to
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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he General Hospital is evaluating new office equipment offered by four companies. The useful life of the equipment is 4 years.
|
Company A |
Company B |
Company C |
Company D |
First cost |
$15,000 |
$18,000 |
$25,000 |
$20,000 |
Maintenance and operating cost (annual) |
1,600 |
1,100 |
400 |
900 |
Annual benefit |
8,000 |
9,000 |
13,000 |
11,000 |
Salvage value |
3,000 |
3,500 |
6,000 |
4,500 |
The
Select one:
20%
25%
35%
30%
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