Hello, can someone please explain how the correct answer is C? Why is the daily operation cost not being added to the rental? It doesn't say anywhere in the question that the daily operating cost is included in the $250 per day rental cost. You are managing a construction project. You have to decide between renting a digger or buying it for the project. You would require the digger for 7 days of work and the following are the costs involved. Cost of digger is $1,400, daily cost of operation = $50, daily rental of the digger= $250. Which of the following is true? SELECT THE CORRECT ANSWER A) It is more economical to buy the digger B) It is more economical to take the digger on rent C) Both are equally economical D) Can't determine with the limited data Correct Option - C EXPLANATION Both are equally economical. Buying option: Cost of digger+(7days*daily cost of operation)=$1400+(7*$50)=$1750. Renting the digger= 7days*daily rental=7*$250=$1750. So both are equal.