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Heidleman Industries is considering two types of materails for roofing its warehouses. EPDM is an elastomeric polymer synthesized from ethylene, propylene, and a small amount of diene monomer, compounded with carbon black processing oils and various cross-linking and stabilizing agents. The 75 mil thickness will cost $4.10 per square foot and will last for 25 years. A thin sheet aluminum roof will cost $6.00 per square foot, but it will last for 50 years. Using an interest rate of 10% per year and a present worth comparison, determine whether the company should install the polymer of the aluminum roof?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9471013

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