Perform a comparison of the costs of given two options

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Question: Transport Pros LLC requires a new concrete compression machine to conduct research that will improve our roads and walkways. They have narrowed their search to two units. Option X (The Compresstron 9000) would cost $24k initially, and $1.5k every year for routine operation and maintenance. The seller estimates a useful life of 18 years and offers to salvage expired units at a salvage value of $8k. Option Y (The Crush Master Elite) would cost $18k initially, and $5k every year for routine operation and maintenance. The seller of this unit estimates a useful life of 10 years. The unit has no salvage value. i = 6%. Perform a comparison of the costs of these two options. Provide as your answer the decimal ratio of the cost of option X to the cost of option Y, Cx/Cy, to at least three significant figures.

Reference no: EM132082231

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