A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as following: Vendor A has a first cost of $15,000, an annual operating cost of $3,500, a salvage value of $1000, and a service life of 6 years. Vendor B has a first cost of $18,000, an annual operating cost of $3,100, a salvage value cof $2,000, and a service life of 9 years. The vendor should be selected & present worth is A,$45,036- B,$41,384- B,539,077- A,540,595-
A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as following: Vendor A has a first cost of $15,000, an annual operating cost of $3,500, a salvage value of $1000, and a service life of 6 years. Vendor B has a first cost of $18,000, an annual operating cost of $3,100, a salvage value cof $2,000, and a service life of 9 years. The vendor should be selected & present worth is A,$45,036- B,$41,384- B,539,077- A,540,595-
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as
following: Vendor A has a first cost of $15,000, an annual operating cost of $3,500, a salvage value of $1000, and
a service life of 6 years. Vendor B has a first cost of $18,000, an annual operating cost of $3,100, a salvage value
:of $2,000, and a service life of 9 years. The vendor should be selected & present worth is
A,$45,036-
B,541,384-
B,$39,077-
A $40,595-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39dbe1bf-ebfb-4168-a811-9e495118f60c%2F810a07af-ba69-47c9-8b27-a3eaace10d89%2F5h6jz66_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as
following: Vendor A has a first cost of $15,000, an annual operating cost of $3,500, a salvage value of $1000, and
a service life of 6 years. Vendor B has a first cost of $18,000, an annual operating cost of $3,100, a salvage value
:of $2,000, and a service life of 9 years. The vendor should be selected & present worth is
A,$45,036-
B,541,384-
B,$39,077-
A $40,595-
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