Question: 5. (2 Points + 2 bonus points) A device can be installed to reduce cost. It has no salvage value at the end of 5
5. (2 Points + 2 bonus points) A device can be installed to reduce cost. It has no salvage value at the end of 5 years useful life. Two options: Device A: Costs $10000 and saves $3200 annually, needs to be replaced every 5 years Device B: Costs $13500 and saves $4000 the year and increases $400 annually, needs to be replaced every 10 years. For a given MARR - 10%, and a service life of 10 years, which device should be recommended? (1) CFD (1 point) (2) Which device should be recommended (3 points)
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