Your company needs to be a new machine. Given the choice between
Model A and Model B, which should you choose and why? The interest
rate is 13%.
A
B
Cost
$4,000
$7,000
Life
4 years
6 years
Annual Cost to operate
$900
$1,100
Group of answer choices
A) A, because its annual cost is about $600 less than B
B) B, because its annual cost is about $400 less than A
C) B, because its annual cost is about $600 less than A
D) A, because its annual cost is about $400 less than B