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What do you recommend the company buy and why

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Reference no: EM132578348

Question -

You have a project that is desperately in need of carpet.

a. This project need is 3000 Square Feet.

i. A high quality carpet costs $24/Square Yard and a low quality carpet costs $18/Square Yard.

ii. The high quality carpet has a life expectancy of 10 years and the low quality carpet of 7 years.

iii. The labor to maintain the high quality carpet is $1000 /Year and the low quality is $800. iv. The predicted material costs for the high quality carpet is $200 /Year and the Low is $250 / Year. v.

The cost of money/ escalation is 9% annually.

b. What do you recommend the company buy and why? The initial requestor does not have a preference on which carpet type is selected and is looking for a recommendation based on what makes the most sense for the company.

Reference no: EM132578348

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