Required information A regional infrastructure building and maintenance contractor must decide to buy a new compact horizontal directional drilling (HDD) machine now, or wait and buy it 2 years from now when a large pipeline contract will require the new equipment. The HDD machine will include an innovative pipeloader design and a maneuverable undercarriage system. The cost of the system is $69,300 if purchased now or an estimated $82,200 if purchased 2 years from now. At i= 9% per year and f= 3% per year, determine if the contractor should buy now or later without any adjustment for inflation. The contractor should buy the drilling machine later for $

Required information A regional infrastructure building and maintenance contractor must decide to buy a new compact horizontal directional drilling (HDD) machine now, or wait and buy it 2 years from now when a large pipeline contract will require the new equipment. The HDD machine will include an innovative pipeloader design and a maneuverable undercarriage system. The cost of the system is $69,300 if purchased now or an estimated $82,200 if purchased 2 years from now. At i= 9% per year and f= 3% per year, determine if the contractor should buy now or later without any adjustment for inflation. The contractor should buy the drilling machine later for $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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