Annual operating costs, The setup can be sold for $1000 at

Annual operating costs

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Better Burger must replace its current grill setup. The two best alternatives are the Burma-Burger and the Chari-Burger. The Burma-Burger costs $12,000 to buy and $1000 in annual operating costs. At the end of the 8 years, the setup can be sold as scrap for $500. The Chari-Burger costs $15,000 to buy and $500 per year for operating costs. The setup can be sold for $1000 at the end of 8 years. Using a MARR of 8%, which setup should be chosen?

Reference no: EM131809660

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