Change the decision to purchase the equipment

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Reference no: EM13796504

A new material handling equipment is being economically evaluated separately by engineers. the first cost is 107000, and salvage value of 35000. Both engineers estimated that the revenues from the equipment will generate 27000 per year. The engineers estimated the equipment life for last 6 year. one estimated the marr is 10% per year and the order estimate the marr as 20%, use the PW to determine if these different estimates of the equipment life will change the decision to purchase the equipment.

both are acceptable

only alternative A is acceptable

only alternative B is acceptable

neither is acceptable

Reference no: EM13796504

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