A dentist is deciding among two x-ray machines for his new, Ask an Expert

Economics

A dentist is deciding among two X-ray machines for his new office. Estimated costs for each machine are given below.

Machine A Machine B

Installed cost 50,000 52,000

Annual maintenance cost 1500 1200

Market value at year 10 5750 6250

Life, years 10 10

Compute the actual dollar annual worth of Machine B. Use an inflation-free MARR of 14 percent, an inflation rate of 6.5 percent per year, and a study period of 10 years. (HINT: skip $ and comma symbols however include +/- signs)

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91224080

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