rou are considering buying a piece of industrial equipment to automate a part of your production process. This automation will save labor costs by as much as $25,000 per year over 10 years. The equipment will cost $200,000. Should you purchase the equipment if your interest rate is 5%? (Hint: compare the present value with the equipment cost to see a cheaper way)

rou are considering buying a piece of industrial equipment to automate a part of your production process. This automation will save labor costs by as much as $25,000 per year over 10 years. The equipment will cost $200,000. Should you purchase the equipment if your interest rate is 5%? (Hint: compare the present value with the equipment cost to see a cheaper way)

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter18: Life-cycle Costing

Section: Chapter Questions

Problem 14RQ

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