A contractor must choose between buying or renting a crane for the duration of a year...
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A contractor must choose between buying or renting a crane for the duration of a year construction project. The contractor uses an MARR of 8%. The crane costs $530,000 and can be sold for $400,000 after 4 years. The cost to operate and maintain the crane is $240,000 per year. Renting the crane costs $310,000 per year including all operating and maintenance costs. Determine the incremental benefit-cost ratio that the contractor should use to decide between buying and renting. Express your answer to two decimal places. A contractor must choose between buying or renting a crane for the duration of a year construction project. The contractor uses an MARR of 8%. The crane costs $530,000 and can be sold for $400,000 after 4 years. The cost to operate and maintain the crane is $240,000 per year. Renting the crane costs $310,000 per year including all operating and maintenance costs. Determine the incremental benefit-cost ratio that the contractor should use to decide between buying and renting. Express your answer to two decimal places.
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
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