You are the design consultant comparing two pump options. The first option has an installation cost of $35,000 and lasts 40 years with $1,000 maintenance every 10 years. The second option has an installation cost of $30,000 and lasts 40 years if a large refurbishment of $15,000 is conducted after 20 years.  Assuming a 6% MARR, PV option 1 =  PV option 2 =  The best is  =

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
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You are the design consultant comparing two pump options. The first option has an installation cost of $35,000 and lasts 40 years with $1,000 maintenance every 10 years. The second option has an installation cost of $30,000 and lasts 40 years if a large refurbishment of $15,000 is conducted after 20 years. 

Assuming a 6% MARR,

PV option 1 = 

PV option 2 = 

The best is  =

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