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Economics

Which model should the consulting firm buy? A consulting engineering firm is considering two models of SUVs for the company principals.

A GM model will have a first cost of $26,000, an operating cost of $2000, and a salvage value of $12,000 after 3 years.

A Ford model will have a first cost of $29,000, an operating cost of $1200, and a $15,000 resale value after 3 years. At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91233981

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