Please help me solve the following:
Two electrical systems are being compared for a new industrial plant. The one system will have first cost of $200,000 and annual operating costs of $10,000.
The second system will have first cost of $300,000 and annual operating costs of $5,000.
Each system will be depreciated over a period of 10 years using straight line depreciation. The company is in a 35% tax bracket. Which system should be selected if they both help produce the same expected profits over the life of the investment?© BrainMass Inc. brainmass.com February 24, 2021, 2:38 pm ad1c9bdddf
Calculate the PV of expenses.