The refrigerator that should be purchased by the individual.

Question

You are in the market for a new refrigerator for your company's lounge, and you have narrowed the search down to two models. The energy-efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. The standard model has features similar to the energy-efficient model but provides no future saving in electricity costs. It is priced at only $500. Assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase?

Answer 1

Question

Chapter 1, Problem 12PAA

To determine

To find:

The refrigerator that should be purchased by the individual.

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