2. A piece of new equipment has been proposed to increase the productivity of a manual process. The investment cost is $50,000, and the equipment will have a market value of $15,000 at the end of five years. Increased productivity attributable to the equipment will amount to $12,000 per year after extra operating costs have been subtracted from the revenue generated by the additional production. If the company's MARR is 18% per year, is this proposal a gɔod one considering AW?

2. A piece of new equipment has been proposed to increase the productivity of a manual process. The investment cost is $50,000, and the equipment will have a market value of $15,000 at the end of five years. Increased productivity attributable to the equipment will amount to $12,000 per year after extra operating costs have been subtracted from the revenue generated by the additional production. If the company's MARR is 18% per year, is this proposal a gɔod one considering AW?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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