Below are two equipment alternatives and their associated cost savings. Assuming a 10% discount rate, the annual cost equivalent and best choice is:     0            1          2          3            4 Alternative A          (224)          25        25        25         25                  Alternative B           (168)          17        17        17 Alternative A, $46 Alternative A, $144 Alternative B, $125 Alternative B, $50

Marketing
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ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
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  • Below are two equipment alternatives and their associated cost savings. Assuming a 10% discount rate, the annual cost equivalent and best choice is:

    0            1          2          3            4

Alternative A          (224)          25        25        25         25

                 Alternative B           (168)          17        17        17

  1. Alternative A, $46
  2. Alternative A, $144
  3. Alternative B, $125
  4. Alternative B, $50

 

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