Two different companies are offering punch press for sale

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Reference no: EM13875226

Two different companies are offering a punch press for sale. Company A charges $250,000 to deliver and install the device. Company A has estimated that the machine will have maintenance and operating costs of $4000 a year and will provide an annual benefit of $89,000. Company B charges $205,000 to deliver and install the device. Company B has estimated maintenance and operating costs of the press at $4300 a year, with an annual benefit of $86,000. Both machines will last 5 years and can be sold for $15,000 for the scrap metal. Use an interest rate of 12% and a present worth analysis to determine the machine that the company should buy.

Reference no: EM13875226

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