Compare the following machines on the basis of their present worth. Use 12% per year. Machine A Machine B First cost 44,000 23,0000 Annual operating cost 7,000 9,000 Annual repair cost 210 350 Overhaul every 2 years 1,900 Overhaul every 5 years 2,500 Salvage value 4,000 3,000

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter13: Services Marketing
Section13.2: American Express Delivers Service With Calls, Tweets, And Apps
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Compare the following machines on the basis of their present worth. Use 12% per year.

Compare the following machines on the basis of their present worth. Use
12% per year.
Machine A
Machine B
First cost
44,000
23,0000
Annual operating cost 7,000
9,000
Annual repair cost
210
350
Overhaul every 2 years
1,900
Overhaul every 5 years 2,500
Salvage value
4,000
3,000
Life, years
14
7
Transcribed Image Text:Compare the following machines on the basis of their present worth. Use 12% per year. Machine A Machine B First cost 44,000 23,0000 Annual operating cost 7,000 9,000 Annual repair cost 210 350 Overhaul every 2 years 1,900 Overhaul every 5 years 2,500 Salvage value 4,000 3,000 Life, years 14 7
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