A construction firm is trying to decide which of two cranes to purchase. Model A costs $100,000 and requires $8,000 a year to maintain. Model B has an initial cost of $80,000 and a maintenance cost of $11,000 a year. For how many years must Model A be used before it becomes more economical than B?

Question

Asa White

9 March, 13:28

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Joshua Robles · Answer 1

It would be 7 years. If you take 11,000*7=77,000+80,000 = 157,000 and than 8,000*7=56,000+100,000 = 156,000 which is 1,000 less than model B