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3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual worth analysis to decide which is the most desirable alternative. Alternative First Cost A B $700,000 $1,700,000 O&M costs 18,000 29,000 Annual benefit 154,000 303,000 Salvage value 142,000 210,000 Useful life, in years 10 20

3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual worth analysis to decide which is the most desirable alternative. Alternative First Cost A B $700,000 $1,700,000 O&M costs 18,000 29,000 Annual benefit 154,000 303,000 Salvage value 142,000 210,000 Useful life, in years 10 20

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Engineering Econ HW5 Q1

3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual worth analysis to decide which is the most desirable alternative. Alternative First Cost A B $700,000 $1,700,000 O&M costs 18,000 29,000 Annual benefit 154,000 303,000 Salvage value 142,000 210,000 Useful life, in years 10 20
Transcribed Image Text:3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual worth analysis to decide which is the most desirable alternative. Alternative First Cost A B $700,000 $1,700,000 O&M costs 18,000 29,000 Annual benefit 154,000 303,000 Salvage value 142,000 210,000 Useful life, in years 10 20
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