The General Hospital is evaluating new office equipment offered by four companies. In each case the interest rate is 15% and the useful life of the equipment is 4 years. Use a Present Worth analysis to determine which company you should purchase the equipment from. First cost Maintenance and operating cost (annual) Annual benefit Salvage value Company A Company B Company C $15,000 $18,000 $25,000 $1,600 $1,100 $400 $8,000 $3,000 Buy the equipment from Select one: O Company A O Company B O Company C O Company D O Don't select any company $9,000 $3,500 $13,000 $6,000 Company D $20,000 $900 $11,000 $4,500

The General Hospital is evaluating new office equipment offered by four companies. In each case the interest rate is 15% and the useful life of the equipment is 4 years. Use a Present Worth analysis to determine which company you should purchase the equipment from. First cost Maintenance and operating cost (annual) Annual benefit Salvage value Company A Company B Company C $15,000 $18,000 $25,000 $1,600 $1,100 $400 $8,000 $3,000 Buy the equipment from Select one: O Company A O Company B O Company C O Company D O Don't select any company $9,000 $3,500 $13,000 $6,000 Company D $20,000 $900 $11,000 $4,500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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