An annual maintenance and operation cost of 27000 and a

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Mr. John is considering two machines to purchase for his company. Machine X will have a first cost of $80,000, an annual maintenance and operation cost of $30,000 and a $ 40,000 salvage value. Machine Y will have a first cost of $97,000, an annual maintenance and operation cost of $27,000 and a $50,000 salvage value. Which should be selected on the basis of a future worth comparison at an interest rate of 15% per year? Use a 3 year study period.

Reference no: EM13629798

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