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An elevator company has redesigned their product to be 50% more energy efficient than hydraulic designs. Two designs are being considered for implementation in a new building. (a) Given an interest rate of 20% which bid should be accepted? Alternatives A B Installed cost $45,000 $54,000 Annual cost 2700 2850 Salvage value 3000 4500 Life, in years 10 15

An elevator company has redesigned their product to be 50% more energy efficient than hydraulic designs. Two designs are being considered for implementation in a new building. (a) Given an interest rate of 20% which bid should be accepted? Alternatives A B Installed cost $45,000 $54,000 Annual cost 2700 2850 Salvage value 3000 4500 Life, in years 10 15

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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An elevator company has redesigned their product to be 50% more
energy efficient than hydraulic designs. Two designs are being
considered for implementation in a new building.
(a) Given an interest rate of 20% which bid should be accepted?
Alternatives A B
Installed cost $45,000 $54,000
Annual cost 2700 2850
Salvage value 3000 4500
Life, in years 10 15

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