You are purchasing a dishwasher for your new restaurant, and you are considering two specific models A and B:

Model A: Noble 1-HH-NO

o Price: $5,029.00

o Uses 1.61 gallons of water per rack

o Can wash up to 39 racks per hour

Model B: CMA-180-VL

o Price: $8,167.80

o Uses 0.89 gallons of water per rack

o Can wash up to 40 racks per hour

Usage Assumptions:

o Assuming you need to wash 100 racks of dishes per day

o Your restaurant is open for 360 days a year

o Water rates = $3.82/hcf

o Sewer rates = $7.04/hcf

o 1hcf = 748 gallons

(1) Calculate the annual water and sewer costs associated with each model.

(2) How many years would it take for Model B to save enough water and sewer costs to be worth the price (compared with model A)?

(3) Which model would you purchase for your new restaurant? Why?