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Category > Business & Finance Posted 06 Jun 2017 My Price 11.00

You are starting a family pizza

You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $9,000 and is expected to run for six years; model B is more expensive, with a price of $14,000, and has an expected life of 10 years. The annual maintenance costs are $800 for model A and $700 for model B. Assume that the opportunity cost of capital is 10 percent. Which one should you buy?

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Homework Helper
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Status NEW Posted 06 Jun 2017 12:06 PM My Price 11.00

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