3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual cash flow analysis to decide which is the most desirable alternative. First cost O&M costs (yr 1) 18,000 + Cost gradient Annual benefit Salvage value Useful life, in years 10 A B S700,000 $1,700,000 29,000 + 900/yr + 750/yr 154,000 303,000 142,000 210,000 20

3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual cash flow analysis to decide which is the most desirable alternative. First cost O&M costs (yr 1) 18,000 + Cost gradient Annual benefit Salvage value Useful life, in years 10 A B S700,000 $1,700,000 29,000 + 900/yr + 750/yr 154,000 303,000 142,000 210,000 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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