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%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!