Question: Which machine model to buy? ABC Inc. just accepted a short - term one time five ( 5 ) - year contract with a brand
Which machine model to buy?
ABC Inc. just accepted a shortterm one time five year contract with a brand new client. At this point, the one time contract is not expected to be renewed. ABC Inc. is considering two different machines, Model A or Model B
Model A requires an initial investment of $ It has a maintenance cost of $ for Year ; $ for Year and $ for Year
Model B requires an initial investment of $ It has a maintenance cost of $ for Year ; $ for Year ; $ for Year and $ for Year
Assume that all dollar amounts are to be paid at the beginning of the year. You have been hired as the finance advisor for ABC Inc. Provide a thorough recommendation ie both financial and nonfinancial advices for ABC Inc.
note The years are so calculate the cost annualy as well as on year scale. Also assume the interest rate to be and and give the cost again.
Reminder: Writing only the final answer is NOT sufficient. give explanation and calculations. no googlegpt
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