You have to decide between buying two pieces of production equipment with the same output but different investment and operating costs.The investment cost of the equipment "A" is HUF 16.5 million and the monthly operating cost is HUF 50,000, while the investment cost of the equipment "B" is HUF 18 million and the monthly operating cost is HUF 35,000.
Is it worth buying the more expensive equipment if the expected payback period is 5 years?
