Two alternative pumps are being compared... Pump A costs $4000, will Save $1200 per year in...

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

Expert Solution

Rahul Sunny answered 2 years ago

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