5.18 The TT Racing and Performance Motor Corporation wishes to evaluate two alternative machines for NASCAR motor tune-ups. (a) Use the AW method at 9% Pe year to select the better alternative. (b) Use spreadsheet single-cell functions to find the better alternative. Machine R Machine S First cost, $ -250,000 -370,500 Annual operating cost, $ per year -40,000 -50,000 Life, years 3 Salvage value, $ 20,000 20,000

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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5.18 The TT Racing and Performance Motor Corporation wishes to evaluate two
alternative machines for NASCAR motor tune-ups. (a) Use the AW method at 9% per
year to select the better alternative. (b) Use spreadsheet single-cell functions to find
the better alternative.
Machine R
Machine S
First cost, $
-250,000
-370,500
Annual operating cost, $ per year
-40,000
-50,000
Life, years
3
5
Salvage value, $
20,000
20,000
Transcribed Image Text:5.18 The TT Racing and Performance Motor Corporation wishes to evaluate two alternative machines for NASCAR motor tune-ups. (a) Use the AW method at 9% per year to select the better alternative. (b) Use spreadsheet single-cell functions to find the better alternative. Machine R Machine S First cost, $ -250,000 -370,500 Annual operating cost, $ per year -40,000 -50,000 Life, years 3 5 Salvage value, $ 20,000 20,000
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