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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Luby’s Cafeterias is in the process of forming a separate business unit that provides meals to facilities for the elderly, such as assisted care and long-term care centers. Since the meals are prepared in one central location and distributed by trucks throughout the city, the equipment that keeps food and drink cold and hot is very important. Michele is the general manager of this unit, and she wishes to choose between two manufacturers of temperature retention units that are mobile and easy to sterilize after each use. Use the cost estimates below to select the more economic unit at a MARR of 8% per year.
|
 |
Hamilton (H) |
Infi nity Care (IC) |
|
Initial cost P, $ |
15,000 |
20,000 |
|
Annual M&O, $year |
6,000 |
9,000 |
|
Refurbishment cost, $ |
0 |
2,000 every 4 years |
|
Trade-in value S, % of P |
20 |
40 |
|
Life, years |
4 |
12 |
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