Under current pandemic conditions, a Huwan wet market must install a new pangolin disinfector, and has to choose from two made-in-Mamoral brands with different initial and operating costs. The dispenser in each option needs replacing at regular intervals. Huwan demands a 9% annual interest rate to analyse such investments. Determine the capitalised cost (i.e. the present cost of purchase, operation and replacement in perpetuity) using the information in the table. Disinfector 1 Disinfector 2 Disinfector purchase cost, $ 350 210 Dispenser cost, $ 35 84 Annual operating costs, $ 56 Dispenser life, years 3 4 Disinfector service life, years 12 12 Salvage value, $ 35 35

Under current pandemic conditions, a Huwan wet market must install a new pangolin disinfector, and has to choose from two made-in-Mamoral brands with different initial and operating costs. The dispenser in each option needs replacing at regular intervals. Huwan demands a 9% annual interest rate to analyse such investments. Determine the capitalised cost (i.e. the present cost of purchase, operation and replacement in perpetuity) using the information in the table. Disinfector 1 Disinfector 2 Disinfector purchase cost, $ 350 210 Dispenser cost, $ 35 84 Annual operating costs, $ 56 Dispenser life, years 3 4 Disinfector service life, years 12 12 Salvage value, $ 35 35

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 20P: Alexander Industries is considering purchasing an insurance policy for its new office building in...

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