Under current pandemic conditions, a Huwan wet market must install a new pangolin disinfector, and has to choose from two made-in-Mamoral brands with different initial and operating costs. The...

Extracted text: Under current pandemic conditions, a Huwan wet market must install a new pangolin disinfector, and has to choose from two made-in-Mamoral brands with different initial and operating costs. The dispenser in each option needs replacing at regular intervals. Huwan demands a 9% annual interest rate to analyse such investments. Determine the capitalised cost (i.e. the present cost of purchase, operation and replacement in perpetuity) using the information in the table. Disinfector 1 Disinfector 2 Disinfector purchase cost, $ 350 210 Dispenser cost, $ 35 84 Annual operating costs, $ 35 56 Dispenser life, years 4. Disinfector service life, years 12 12 Salvage value, $ 35 35