Question: 10.Matt Appleton Construction Inc. needs additional small overhead crane to improve material handling and safety requirement in their design lab area. They are considering two
10.Matt Appleton Construction Inc. needs additional small overhead crane to improve material handling and safety requirement in their design lab area. They are considering two popular models: Air left K95, CMF 1034. The local bank offering for a new loan 4% every 6 months and MARR is 12% The financial data for each model are given:
Air Lift K95 - Initial Cost $20,000 - Useful Life 6 years - Salvage Value $2,000 - Annual Operating Cost $8,000
CMF 1034 - Initial Cost $29,000 - Useful Life 7 years - Salvage Value $4,000 - Annual Operating Cost $4,000
a. Which model is more economical for Matt Appleton Construction Inc?
b. List four important assumptions of your recommendations?

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