SOLUTION: A company is considering two types of equipment with the following information. Using benefit cost ratio which equipment must be adopted if money is worth 10% per annum.
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Question 1121256: A company is considering two types of equipment with the following information. Using benefit cost ratio which equipment must be adopted if money is worth 10% per annum.
Type A Type B
First Cost 5,000.00 11,750.00
Salvage Value 1,250.00 3,750.00
Annual maintenance Cost 1,080.00 1,130.00
Annual Benefits 2,380.00 3,880.00
Life / Years 6 12
