You have been asked to choose between two office equipment, which will be needed for 6 years of operation. Equipment A will last 3 years, whereas equipment B will last 6 years. Equipment A costs $2800, will enable annual savings of $1200, has no salvage value, and should be replaced with an identical equipment at the end of its life. Equipment B costs $4793, will enable annual savings of $1200, and has no salvage value. Calculate the total present worth of each scenario at 12% interest rate. Then, both cells should be highlighted in yellow. You must use the correct +/- sign for your final answers to earn point.

Q&A Education