Question

You need to decide whether to hire three landscapers or hire just two but buy a faster mower; both options will deliver the same revenue. If landscapers cost you $18 an hour and work 2000 hours a year, and the new mower will cost $8,000, which option will be cheaper for you over the next three years?

Answer 1

I think buying a new mower will be a much more financial sound decision because it can last 3 years, however, if you hire landscapers it will cost significantly much more money than buying a new mower.

Explanation:

Reason for this is that:

$18×2000 hours= $36,000 each year

For three years: $36,000×3=$108,000

which is more than $8,000

Hence, buying a new mower would be the better solution.