Question

Name You have a business making fishing rod holders. There are two options for improvement. One b s new, cheap molder which will last for five years at the intended use. A more professional model will last longer (15 years). The table below summarizes the costs. king fishing rod holders. There are two options for improvement. One isa expensive new (H) N HobbyistNew pro athelatie Initial cost $25,000 $230,000 Annual operating cost $120,000 $110,000 $10000 $25,000 Salvage 15 Machine life, years5 Using an interest rate (MARR) of 12% per year, determine which option he should select to maximize his profits over 15 years.