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Mathematics, 12.02.2020 04:10 alizeleach0123

An automobile firm wants to purchase either machine A or machine B. The intial cost of machines A and B are $40,000 and $50,000, respectively. The power consumption per year of machines A and B are 120 MWh and 100 MWh, respectively. The power cost is $40/MWh. The estimated life of both machines is 10 ye $20,000 for machine B. According to the life-cycle costing approach, the overall cost of machines A and B are:

A. $88,000 and $98,000, respectively
B. 875,000 and $70,000, respectively
C. $118,000 and $110,000, respectively
D. $74,800 and $79,000, respectively
E. $110,000 and $120,000, respectively.

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