In: Accounting
You are choosing a pump to go into a fire protection system in a high rise office building. You have narrowed your selection to three brands. The relevant information is presented in the table below. Assuming an interest rate of 5%, what is the most attractive choice??
|
Alternative A |
Alternative B |
Alternative C |
|
|
Type |
Add – Sum – Pressure |
HP Pumps |
Test – Me – Often |
|
Life |
20 years |
15 years |
10 years |
|
Initial Cost |
$350,000 |
$300,000 |
$200,000 |
|
Maintenance |
$2,000 |
$2,500 |
$5,000 |