You are a water filter manufacturer trying to decide if you
should invest in an automatic or manually operated machinery. Both
alternatives’ present costs are pegged at $5000, however, they lead
to different revenue patterns thereafter. The automatic machine
allows for higher production levels and thus more revenues
immediately, however more energy costs over time than the manual
machine means that net revenues diminish over time. The manual
machine does not produce as many filters initially but has no
energy...