Question

How u would use capital cost, running cost and life span to compare two different plant to enable you choose the best alternative

Answer 1

Capital cost running cost and life span play a very important role to compare between two different

Explanation:

• if the capital cost is more then the likelihood of profit will be more. As a result of this the more promising plant will have higher capital cost as compared to the other.
• The running cost also is an essential factor because if the running cost is higher the efficiency of production will also be high resulting in better development of the plant. In the life span of the company is more than the the profit will be more and the form will be more promising

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