Question

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?

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