Two laser machines (A & B) used in a project and are being compared to choose one of them, for a medical center specialized in eye's treatments. The price of machine A is 1,200,000 Usd and requires an annual maintenance of 100,000 Usd, while the price of machine B is 1,000,000 Dhs and requires an annual maintenance of 120,000 Usd. The expected life time for both machines is 8 years after which the two machines salvage values will be 150,000 Usd for machine A and 125,000 Usd for machine B. The MARR decided by the medical center administration is 9% per year. So tell the future calculated worth analysis to decide whuch a or b will be good to be purchased?
Two laser machines (A & B) used in a project and are being compared to choose one of them, for a medical center specialized in eye's treatments. The price of machine A is 1,200,000 Usd and requires an annual maintenance of 100,000 Usd, while the price of machine B is 1,000,000 Dhs and requires an annual maintenance of 120,000 Usd. The expected life time for both machines is 8 years after which the two machines salvage values will be 150,000 Usd for machine A and 125,000 Usd for machine B. The MARR decided by the medical center administration is 9% per year. So tell the future calculated worth analysis to decide whuch a or b will be good to be purchased?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Two laser machines (A & B) used in a project and are being compared to choose one of them,
for a medical center specialized in eye's treatments. The price of machine A is 1,200,000 Usd
and requires an annual maintenance of 100,000 Usd, while the price of machine B is 1,000,000
Dhs and requires an annual maintenance of 120,000 Usd. The expected life time for both
machines is 8 years after which the two machines salvage values will be 150,000 Usd for
machine A and 125,000 Usd for machine B. The MARR decided by the medical center
administration is 9% per year. So tell the future calculated worth analysis to decide whuch a or b will be good to be purchased?
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