As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Show that the same selection is made for the following methods:a. PW method b. FW method c. EUAC methodAlternativeABCapital investmentALTERNATIVE A $272,000ALTERNATIVE B $346,000Annual expenses ALTERNATIVE A $28,8001 ALTERNATIVE B $9,300Useful life (years)ALTERNATIVE A =6 ALTERNATIVE B =9Salvage valueALTERNATIVE A $ 25,000ALTERNATIVE B $40,000 2. As supervisor of a facilities engineeringdepartment, you consider mobile cranesto be critical equipment. The purchaseof a new, medium-sized truck-mountedcrane is being evaluated. The economicestimates for the two best alternatives areshown in the following table. MARR is at15% per year. You can use the assumptionof repeatability in this case. Show that thesame selection is made for the followingmethods:a. PW method b. FW method c. EUACmethodAlternativeAВCapital investmentALTERNATIVE A $272,000ALTERNATIVE B $346,000Annual expensesALTERNATIVE A $28,8001ALTERNATIVE B $9,300Useful life (years)ALTERNATIVE A =6ALTERNATIVEB =9Salvage valueALTERNATIVE A $ 25,000ALTERNATIVEB $40,000

PW Method The present worth approach is frequently used in various industry because it reduces all…

Answered: 2. As supervisor of a facilities…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Show that the same selection is made for the following methods: a. PW method b. FW method c. EUAC method Alternative A B Capital investment ALTERNATIVE A $272,000 ALTERNATIVE B $346,000 Annual expenses ALTERNATIVE A $28,800 1 ALTERNATIVE B $9,300 Useful life (years) ALTERNATIVE A =6 ALTERNATIVE B =9 Salvage value ALTERNATIVE A $ 25,000 ALTERNATIVE B $40,000

2. As supervisor of a facilities engineering
department, you consider mobile cranes
to be critical equipment. The purchase
of a new, medium-sized truck-mounted
crane is being evaluated. The economic
estimates for the two best alternatives are
shown in the following table. MARR is at
15% per year. You can use the assumption
of repeatability in this case. Show that the
same selection is made for the following
methods:
a. PW method b. FW method c. EUAC
method
Alternative
A
В
Capital investment
ALTERNATIVE A $272,000
ALTERNATIVE B $346,000
Annual expenses
ALTERNATIVE A $28,800
1ALTERNATIVE B $9,300
Useful life (years)
ALTERNATIVE A =6
ALTERNATIVEB =9
Salvage value
ALTERNATIVE A $ 25,000
ALTERNATIVEB $40,000

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