Math Problem Statement
Two projects are under evaluation. Project A will cost $200,000 to build and $20,000 per year to operate. Project B will cost $300,000 to build and $10,000 a year to operate. The useful economic life of both projects is 40 years. Money costs 6 percent.
Based on this information, you will recommend Project because its life cycle cost is than that of Project by $ .
Solution
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Math Problem Analysis
Mathematical Concepts
Finance
Present Value
Discounting
Formulas
Present Value of an Annuity
Theorems

Suitable Grade Level
Advanced High School
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