Question 5.4: Two pumps are being considered for purchase. If interest is ...
Two pumps are being considered for purchase. If interest is 7%, which pump should be bought? Their maintenance costs are the same.
Pump B | Pump A | |
$5000 | $7000 | Initial cost |
1000 | 1200 | End-of-useful-life salvage value |
6 | 12 | Useful life, in years |
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