Question: Hydro-Tek Consulting is evaluating two water pumps with the same operating costs. The first pump lasts three years and costs $12,000. The second one lasts

Hydro-Tek Consulting is evaluating two water pumps with the same operating costs. The first pump lasts three years and costs $12,000. The second one lasts 4 years and costs $15,000. Current market interest rate is 8%. Compare the two using the repeated lives method.

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