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
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Chapter1: Making Economics Decisions
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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
5
Transcribed Image Text: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 5
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