Compare two refrigerators: Refrigerator A costs $500; Refrigerator B costs $650. A uses $0.70 per day ($255.50 per year) and B uses $0.45 of electricity per day ($165.25 per year); both have a life expectancy of 10 years. Which has the lower life-cycle cost?
What will be an ideal response?
The cost of owning refrigerator A is
$500 + (255.50/year • 10 years) = $500 + $2,555 = $3,055.00.
The cost of owning refrigerator B is
$650 + (164.25/year • 10 years) = $650 + $1,642.50 = $2,292.50.
The life-cycle cost of refrigerator B is actually cheaper than A.
You might also like to view...
A marketing objectives statement would include all of the following except:
A. market share B. product design C. sales goals D. profitability
Answer the following statement(s) true (T) or false (F)
1. The job of a transmitter is to send a signal source over a communication channel. 2. There are an unlimited number of communication channels. 3. A satellite dish is a microwave antenna. 4. Antenna alignment is critical to the quality of reception. 5. A half-duplex system can only transmit a signal.
HVAC systems must be installed and operational for at least ________ before delivery of flooring products from suppliers
A) 1 day B) 7 days C) 10 days D) 3 days
Technician A says that if a fuel supply line ruptures during an accident resulting in fuel pressure loss and engine stall, the PCM will shut down the fuel pump. Technician B says that the fuel pump is controlled by the ignition switch only and should always run whenever the ignition switch is in the "run" position. Who is correct?
A. Technician A only B. Technician B only C. Both technicians D. Neither technician