9 A company is planning to purchase a new generator

Last updated: 3/26/2024

9 A company is planning to purchase a new generator Generator A has a useful life of 5 years while Generator B has a useful life of 10 years The salvage value of both is zero at the end of their useful lives Cash flows are as follows Generator Initial Cost Annual benefit Useful life A B 6 500 12 000 1 800 5 years 2000 10 years Use a 10 year analysis period and 8 interest rate to determine which generator the company should purchase