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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![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, $
35
56
Dispenser life, years
4
Disinfector service life, years 12
12
Salvage value, $
35
35](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd4d621a8-148b-4499-ac80-96b80649c69b%2F4783725b-dd9b-4ca1-a242-01ef97b300e0%2F6g04s2_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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, $
35
56
Dispenser life, years
4
Disinfector service life, years 12
12
Salvage value, $
35
35
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