The standard model is plastic and has no scrap value

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The 16 overhead doors on your loading dock must be replaced now . The deluxe model costs $2,200 for each door and will last for six years. The standard model costs $1,600 for each door and will last for four years. The deluxe model is aluminium so it will have a scrap value of $150 (for each door) at the end of its life. The standard model is plastic and has no scrap value. The use of the deluxe model on the loading dock will also save your company $1,000 per year (i.e., having all the doors saves you a total of $1,000 per year) in heating costs because of its ability to seal better. If you use an MARR of 12% and Net Present Worth Analysis, which door should you recommend?

Reference no: EM13743029

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