The Queen Enterprise Wants to Purchase a Large Rotary Screw

Multiple Choice

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:

-Calculate the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 12%.

A) -$52,541
B) -$43,378
C) -$55,105
D) -$41,385
E) -$45,539