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3. In 2000, Bell Atlantic and GTE merged to form a giant telecommunications corporation named Verizon Communications. As expected, some equipment incompatibilities had to be rectified, especially for long distance and international wireless and video services. One item had two suppliers, a U.S. firm (A) and an Asian firm (B). Estimates for vendors A and B were given for each unit. Initial cost, $ Annual costs, $ Salvage value, $ Life, years A -8,000 -3,500 0 10 B -11,000 -1,600 2,000 5 Determine which vendor should be selected if the MARR is 15% per year. (Note: ROR analysis requires equal-service comparison between alternative. Therefore, develop the cash flow and incremental cash flow series using the least common multiple of years, assuming reinvestment in alternatives.)

3. In 2000, Bell Atlantic and GTE merged to form a giant telecommunications corporation named Verizon Communications. As expected, some equipment incompatibilities had to be rectified, especially for long distance and international wireless and video services. One item had two suppliers, a U.S. firm (A) and an Asian firm (B). Estimates for vendors A and B were given for each unit. Initial cost, $ Annual costs, $ Salvage value, $ Life, years A -8,000 -3,500 0 10 B -11,000 -1,600 2,000 5 Determine which vendor should be selected if the MARR is 15% per year. (Note: ROR analysis requires equal-service comparison between alternative. Therefore, develop the cash flow and incremental cash flow series using the least common multiple of years, assuming reinvestment in alternatives.)

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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3. Use the provided chart to solve this problem. Show your work.

factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
Transcribed Image Text:factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
3. In 2000, Bell Atlantic and GTE merged to form a giant telecommunications corporation named Verizon Communications. As expected, some equipment incompatibilities had to be rectified, especially for long distance and international wireless and video services. One item had two suppliers, a U.S. firm (A) and an Asian firm (B). Estimates for vendors A and B were given for each unit. Initial cost, $ Annual costs, $ Salvage value, $ Life, years A -8,000 -3,500 0 10 B -11,000 -1,600 2,000 5 Determine which vendor should be selected if the MARR is 15% per year. (Note: ROR analysis requires equal-service comparison between alternative. Therefore, develop the cash flow and incremental cash flow series using the least common multiple of years, assuming reinvestment in alternatives.)
Transcribed Image Text:3. In 2000, Bell Atlantic and GTE merged to form a giant telecommunications corporation named Verizon Communications. As expected, some equipment incompatibilities had to be rectified, especially for long distance and international wireless and video services. One item had two suppliers, a U.S. firm (A) and an Asian firm (B). Estimates for vendors A and B were given for each unit. Initial cost, $ Annual costs, $ Salvage value, $ Life, years A -8,000 -3,500 0 10 B -11,000 -1,600 2,000 5 Determine which vendor should be selected if the MARR is 15% per year. (Note: ROR analysis requires equal-service comparison between alternative. Therefore, develop the cash flow and incremental cash flow series using the least common multiple of years, assuming reinvestment in alternatives.)
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