Question: A case study . A manufacturing company is evaluating two options for new equipment to introduce a new product to its suit of goods. The

A case study . A manufacturing company is evaluating two options for new equipment to introduce a new product to its suit of goods. The details for each for each option are provided below:

Option 1

. $ 75,000 for equipment with useful life of 7 years and no salvage value.

. maintenance costs are expected to be $ 2,500 per year and increase by 3% in year 6 and remain at that rate.

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