Capital Project and PlanningYour hospital is evaluating two alternative delivery trucks.
Truck A has an initial cost of $27,000 and expected annual operating costs of $7,000. Truck A has an estimated seven-year life.
Truck B will cost $20,000 and will last five years, with annual operating costs of $10,000.
Which truck has the lowest-equivalent annual cost if your discount rate is eight percent?
How much does a basis point equal?
How many basis points are there between six- and five-eighths percent and six- and three-quarters percent?
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Capital Project and Planning Your hospital is evaluating two alternative delivery trucks. Truck A has an initial cost of $27,000 and expected annual operating costs of $7,000. Truck A has an estimated seven-year life. Truck B will cost $20,000 and will last five years, with annual operating costs of $10,000. Which truck has the lowest-equivalent annual cost if your discount rate is eight percent? How much does a basis point equal? How many basis points are there between six- and five-eighths percent and six- and three-quarters percent?
Capital Project and Planning Your hospital is evaluating two alternative delivery trucks. Truck A has an initial cost of $27,000 and expected annual operating costs of $7,000. Truck A has an estimated seven-year life. Truck B will cost $20,000 and will last five years, with annual operating costs of $10,000. Which truck has the lowest-equivalent annual cost if your discount rate is eight percent? How much does a basis point equal? How many basis points are there between six- and five-eighths percent and six- and three-quarters percent?