In: Economics
Two alternative pumps are being compared...
Pump A costs $4000, will Save $1200 per year in operating and maintenance, and is expected to last 6 years
Pump A costs $4800, will Save $1400 per year in operating and maintenance, and is expected to last 6 years
If the cost of capital is 16%, which alternative has the better discounted payback period.?
Do not post excel sheet, i need equations to follow the work