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Business, 21.08.2021 04:50 barbareishon11

OM Construction Company must choose between two types of cranes which perform the same functions. Crane A costs $600,000, will last for five years, and will require $60,000 in maintenance each year. Crane B costs $750,000, will last for seven years, and will require $30,000 in maintenance each year. Maintenance costs for cranes A and B occur at the end of each year. The appropriate discount rate is 12 percent per year and there are no taxes. Which machine should OM Construction purchase?

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