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You can buy air compressor A for $15,000 or air compressor B for $6,000.

You can buy air compressor A for $15,000 or air compressor B for $6,000. Compressor A will cost $10,000 per year to operate. Compressor B will cost $11,500 per year to operate. If both air compressors have a 10-year life and your required return on investment is 12%, which air compressor has the lowest total life-cycle cost?

A.

Compressor A

B.

Compressor B

C.

Both air compressors have the same life-cycle cost

AEE CEM Summary

  • Vendor: AEE
  • Product: CEM
  • Update on: Jul 22, 2025
  • Questions: 130
Price: $52.5  $149.99
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