An alternative to buy and an alternative to lease hydraulic lifting equipment have been formulated. Use the
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Label the parameterscarefully.
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Purchase Alternative Estimated Value High Assumed Distribution Parameter First cost,S Salvage value, S Life, years AOC, $ per year Low 25,000 20,000 Uniform continuous 3,000 2,000 Triangular mode at $2500 Triangular mode at 6 9,000 5,000 Uniform: continuous Lease Alternative Estimated Value Low 2000 1800 Assumed Distribution High Parameter Lease first cost, S AOC, $ per year Lease term, years Uniform continuous 9000 5000 Triangular; mode at $7000 3 3 Certainty
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