Business
Business, 21.11.2019 06:31, uticabadgirl

Acurrently owned shredder used in a refuse-powered electrical generating plant has a present net realizable value of $200,000 and is expected to have a market value of $10,000 after 4 years. operating and maintenance disbursements are $100,000 per year. an equivalent shredder can be leased for $200 per day plus $80 per hour of actual use as determined by an hour meter, with both components assumed to be paid at year-end. actual use is expected to be 1,500 hours and 250 days per year. using a 4-year planning horizon, a before-tax analysis, and a marr of 15%, determine the preferred alternative using the annual cost criterion.

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