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QUESTION 2 A factory is comparing two final offers (A & B) to choose from. The...

QUESTION 2

  1. A factory is comparing two final offers (A & B) to choose from. The initial price of the offer A is $ 8,000,000 with an expected annual maintenance of $105,000 and a salvage value of $ 450,000 after the 6 years life time of the project. On the other hand, the initial price of the offer B is $ 3,200,000 with an expected annual maintenance of $ 130,000 and a salvage value of $ 300,000 after the 4 years life time of the project. The MARR of the factory is 18% per year.

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ekkarill92 answered 2 years ago
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