Question

In: Accounting

You are choosing a pump to go into a fire protection system in a high rise...

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

Solutions

Expert Solution


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