Afirm is trying to decide which of two devices to install to reduce costs in a particular situation devices a costs $1000, device b costs $1350 and both have useful lives of 5 years and no salvage value device a can be expected to result in $300 savings annually device b will provide cost savings of $300 the first year, but savings will increase by $50 annually, making the second-year savings $350, the third-year savings $400, and so forth with interest rate at 7%, which device should the firm purchase? use cost benefit ratio to solve this question. show all your steps, build models, provide them with number, come up with results and show their units, then, draw conclusions.

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?