Tenders received from manufacturers indicate that a fan priced at $150,000 will cost $220,000 per year to run, whilst a fan costing $265,000 will require $190,000 per year in operating costs. If the costing period is five years with an annual interest rate of 10%, determine which fan is the most economical.

Answer rating: 100% (QA)

To determine which fan is the most economical we need to consider the total cost of each fan over th... View the full answer