Problem
The state highway department may purchase new lawn-mowing equipment. The best alternative requires an initial investment of $90,000. Each year, the new equipment is expected to save the state $19,500. The equipment will be used for 6 years and has little or no expected salvage value. Using benefit/cost analysis and an interest rate of 10%, should the equipment be purchased?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.