Choose a pump using net present worth analysis

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Reference no: EM131968807

Question: A district wastewater recovery facility is considering the purchase of a new pump. There are two options. The first is pump #1 which costs $12,000, has a life of 10 years, an annual operating cost of $950, an annual maintenance amount of $70 and a salvage value of $500. The second option is pump #2 which costs $3000, has a life of 5 years, an annual operating cost of $1400, an annual maintenance amount of $500 and a salvage value of $400. Using Net Present Worth analysis and an annual interest rate of 10%, choose a pump.

Reference no: EM131968807

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