Find net annual cost of each ad select economical alternives

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An irrigator needs a motor to drive a pump.
Alternitive A: $2,500 initial cost, 10 year economiclife, $500 salvage, $4,500 per year O & M. Buy a new oneevery 10 years
Alternitive B: $3,500 initial cost, 20 year economiclife, $500 salvage, $4,000 per year O&M. Buy a new oneevery 20 years.
Compute the net annual cost of each ad select the mosteconomical alternitive. Use i = 6%.

Reference no: EM13243828

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