A professional kitchen is attempting to choose between gas and electricity for its main heat source. Once a choice is made, the kitchen intends to keep to that source indefinitely. Each gas oven has a net present value (NPV) of $50,000 over its useful life of 5 years. Each electric oven has an NPV of $68,000 over its useful life of 7 years. The cost of capital is 8%.Which should the kitchen choose and why?
A、GasbecauseitsaverageNPVperyearishigherthanelectric;
B、ElectricbecauseitsNPVishigherthangas;
C、Electricbecauseitsequivalentannualbenefitishigher;
D、Electricbecauseitlastslongerthangas
发布时间:2024-09-30 12:38:08