2) Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a- Future worth analysis. b- Annual worth analysis Machine R Machine S First cost, $ -250,000 -370,500 Annual operating cost, $ per year Salvage value, $ Life, years -40,000 -50,000 20,000 30,000 3

2) Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a- Future worth analysis. b- Annual worth analysis Machine R Machine S First cost, $ -250,000 -370,500 Annual operating cost, $ per year Salvage value, $ Life, years -40,000 -50,000 20,000 30,000 3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given the following: Alt. A Alt. B Alt. C Initial Cost $25,000 $40,000 $32,000 Benefits Year 1 5000 2000 6000 Year 2 5500 9000 6000 Year 3 6000 8000 6000 Year 4 6500 7000 6000 Year 5 7200 6000 7000 Salvage Value 4000 8000 6500 MARR 8% Find the best alternative using uniform annual cash flow analysis.
Solve the Engineering Economics Problem
Topic: Annual Worth Analysis 1.) Compare the machines below based on their annual worth at a 14% interest rate yearly. (Include cash flow diagrams)
For the project with cash flow given below find the most sensitive factor among annual benefit, annual cost and salvage value if the changes by ±20%. Initial investment Annual revenue Annual Cost Salvage Value MARR Life in years Project Rs.2,00,000 Rs.1,00,000 Rs. 40,000 Rs. 50,000 10% 5
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