Two different companies are offering a punch press for Company a charges $250,000 to deliver and install
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Two different companies are offering a punch press for Company a charges $250,000 to deliver and install the device. Company A has estimated that the machine will have maintenance and operating costs of $4000 a year and will provide an annual benefit of $89,000. Company B charges $205,000 to deliver and install the device. Company B has estimated maintenance and operating costs of the press at $4300 a year, with an annual benefit of $86,000. Both machines will last 5 years and can be sold for $15,000 for the scrap metal. Use an interest rate of 12%. Which machine should your company purchase, based on the forgoing data?
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