Replace its grape pressing machine

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Reference no: EM131101438

The Whine not winery (WnW) must replace its grape pressing machine. 2 companies have submitted bids, KS and SM. The annual operating costs of both increase at 12% per year and the WnW uses a MARR of 9%. KS's first cost 350k, initial annual operating cost = 28k, salvage value is 35k and is useful for 5 years. SM's numbers are 500k, 22.5k, 50k over 10 years. How much does the better choice save.

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Reference no: EM131101438

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