3 LO Construction Co. is planning to purchase a new truck. Company uses MARR as 10% per year. Evaluate the following two alternatives by Present Worth Analysis using Least Common Multiple (LCM) technique. Select the PW value of Alternative A. First Cost, S Annual Income, S/year Annual Operating Cost, S/year Salvage Value, S Life, years a. -34530 b. 13580 c. -44875 d. -25740 e. 8795 -15000 2500 -5000 2000 3 B -13000 3000 -7000 1500 2

3 LO Construction Co. is planning to purchase a new truck. Company uses MARR as 10% per year. Evaluate the following two alternatives by Present Worth Analysis using Least Common Multiple (LCM) technique. Select the PW value of Alternative A. First Cost, S Annual Income, S/year Annual Operating Cost, S/year Salvage Value, S Life, years a. -34530 b. 13580 c. -44875 d. -25740 e. 8795 -15000 2500 -5000 2000 3 B -13000 3000 -7000 1500 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Revenue and Costs ($) TC P61 Given TFC = $40.00 Q1 = 30.00 Q2 = 40.00 TR P6 P5 Q3 = 50.00 Q4 = 80.00 Q5 = 86.00 P4. P1 = $40.00 P2 = $50.00 P3 = $60.0o P4 = $150.00 P5 = $200.00 P6 = $210.00 P61 = $320.00 P3 P2 P1 Q1 Q2 Q4 Q5 Q3 Exhibit TR-TC Output (Q) Refer to Exhibit TR-TC for a typical competitive firm. At an output level of Q5, the firm's losses is about O $100.00 O $90.00 O $110.00 O $120.00