A Dentist Is Deciding Between Two X- Ray Machines for His

Essay

A dentist is deciding between two X- ray machines for his new office. Estimated costs for each machine are the following: $$\begin{array} { | l | l | l | } \hline \text { Machine } & \text { A } & B \\\hline \text { Installed cost } & \$ 36,000 & \$ 38,000 \\\hline \text { Annual maintenance cost } & \$ 1250 & \$ 950 \\\hline \text { Market value at year } 6 & \$ 5750 & \$ 6250 \\\hline \text { Life, years } & 6 & 6 \\\hline\end{array}$$ Which machine should be recommended based on the annual worth method? Use a MARR of 15% and a study period of 6 years.