Going Broke County is using a 10% annual interest rate to decide if it should buy Snowplow A or Snowplow B.

What should Going Broke County do? Justify your answer.

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Initial Cost Life Annual Maintenance Annual Benefits Salvage Value Snowplow A $300,000 10 yrs $ 45,000 $ 150,000 0 Snowplow B $400,000 10 yrs $ 35,000 $ 200,000 $ 10,000 Initial Cost Life Annual Maintenance Annual Benefits Salvage Value Snowplow A $300,000 10 yrs $ 45,000 $ 150,000 0 Snowplow B $400,000 10 yrs $ 35,000 $ 200,000 $ 10,000

Answer rating: 100% (QA)

Since both Snowplow have same life e use Present Worth PW of net benefits Annual benefit ... View the full answer