You are the technology manager of a small construction firm and before the upcoming construction season you wish to make the argument that the use of nail guns can reduce costs and save the firm money and time. To demonstrate this, you decide to use a benefit cost analysis on the three popular types of nail guns, namely the generic, name brand and professional units. The various costs and benefits of these tools are outlined below. Determine the tool with the best benefit-cost ratio and if this tool depreciates by 7% per year, what would the asset (the tool) be worth after its life expectancy of 5 years.
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