You are choosing a pump to go into a fire protection system in a high rise office building. You have narrowed your selection to three brands. The relevant information is presented in the table below. Assuming an interest rate of 5%, what is the most attractive choice? Alternative A Alternative B Alternative C Type Add – Sum – Pressure HP Pumps Test – Me – Often Life 20 years 15 years 10 years Initial Cost $450,000 $350,000 $250,000 Maintenance $2,000 $3,000 $5,500 Alternative A Alternative B Alternative C Both Alternative B and C are equally attractive
You are choosing a pump to go into a fire protection system in a high rise office building. You have narrowed your selection to three brands. The relevant information is presented in the table below. Assuming an interest rate of 5%, what is the most attractive choice? Alternative A Alternative B Alternative C Type Add – Sum – Pressure HP Pumps Test – Me – Often Life 20 years 15 years 10 years Initial Cost $450,000 $350,000 $250,000 Maintenance $2,000 $3,000 $5,500 Alternative A Alternative B Alternative C Both Alternative B and C are equally attractive
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You are choosing a pump to go into a fire protection system in a high rise office building. You have narrowed your selection to three brands. The relevant information is presented in the table below. Assuming an interest rate of 5%, what is the most attractive choice?
Alternative A
Alternative B
Alternative C
Type
Add – Sum – Pressure
HP Pumps
Test – Me – Often
Life
20 years
15 years
10 years
Initial Cost
$450,000
$350,000
$250,000
Maintenance
$2,000
$3,000
$5,500
Alternative A
Alternative B
Alternative C
Both Alternative B and C are equally attractive
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