Compare Two Refrigerators: Refrigerator a Costs $500;Refrigerator B Costs $650

question 17

Essay

Compare two refrigerators: Refrigerator A costs $500;Refrigerator B costs $650.A uses $0.70 per day ($255.50 per year)and B uses $0.45 of electricity per day ($165.25 per year);both have a life expectancy of 10 years.Which has the lower life-cycle cost?

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Definitions:

Efficiency

The effectiveness with which an organization utilizes resources to achieve its objectives with minimum waste.

Accuracy

The extent to which the outcome of a measurement, computation, or detail agrees with the true value or an established norm.

Depreciation Policy

A specific method or approach a company uses to allocate the cost of a tangible asset over its useful life.

Underground Storage

Facilities used for the storage of goods, valuables, or commodities below the earth's surface.