Table 10 -2.

-A restaurant is trying to determine the lowest total cost for purchasing a replacement freezer. The cost of capital is 6 percent and the freezer should last for 11 years. Using Table 10 -2, which freezer should the restaurant purchase?

Question

Table 10 -2.
 
-A restaurant is trying to determine the lowest total cost for purchasing a replacement freezer. The cost of capital is 6 percent and the freezer should last for 11 years. Using Table 10 -2, which freezer should the restaurant purchase?

Quizplus · Accepted Answer

Freezer A has the lowest present value cost of $10,000.

Table 10 -2. -A Restaurant Is Trying to Determine the Lowest Total Cost