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Business, 06.07.2021 16:00 18alewis

A customer is considering to Fire Sprinkler a building to lower his insurances premium: Two choices were presented to him : (Hint: Alternates with unequal economic lives may be compared by assuming replacement in kind at the end of the shorter life, thus maintaining the same level of uniform payment) i=10% Partial System : Initial Cost 8,000.00, Insurance Cost $1,000.00/Year Life N=15 year Full System $ 15,000, Insurance Cost $250/Year Life N=20 year. A. Full System $8,100
B. Full System $1,694.50
C. Partial System $8,540.00
D. Partial System $1,770.40

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