Question: An engineer is considering two different machines. A plastics machine operation will initially cost $0.90 per square foot and will need to be replaced within
An engineer is considering two different machines. A plastics machine operation will initially cost $0.90 per square foot and will need to be replaced within 15 years. This removal will cost $500,000. A rubberized elastometric machine is more durable so it is expected to last 30 years but will cost $2.20 per square foot to run. If the size of the pool is 110 acres (1 acre = 43,460 square feet), which liner is more cost effective compared to present value at an annual interest rate of 8%
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