6-48. It has been decided that whóle body scanning technology will be used for airport security purposes. Two types of devices are being considered at a certain airport (only one will be selected): back scatter (B) and millimeter wave (W). The selected scanning equipment is to be used for six years. The economic decision criterion at this airport is to meet or exceed a 15% annual return on its investment. Based on the data found in Table P6-48.

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technology will be used for airport security purposes.
6-48. It has been decided that whole body scanning
technology will be used for airport security purposes
Two types of devices are being considered at a certain
airport (only one will be selected): back scatter (B) ani
millimeter wave (W). The selected scanning equipment is
to be used for six years. The economic decision criterion at
this airport is to meet or exceed a 15% annual return on
its investment. Based on the data found in Table P6-48.
Transcribed Image Text:technology will be used for airport security purposes. 6-48. It has been decided that whole body scanning technology will be used for airport security purposes Two types of devices are being considered at a certain airport (only one will be selected): back scatter (B) ani millimeter wave (W). The selected scanning equipment is to be used for six years. The economic decision criterion at this airport is to meet or exceed a 15% annual return on its investment. Based on the data found in Table P6-48.
PROBLEMS 345
TABLE P6-48 Table for Problem 6-48
Factor
Capital investment
Useful life (years)
Annual expenses
$210,000
$264,000
6
10
$31,000 in the first year and increasing $19,000 in the first year and increasing
$2,000 per year thereafter
5.7% per year thereafter
$38,000
Market value (end
$21,000
of useful life)
Transcribed Image Text:PROBLEMS 345 TABLE P6-48 Table for Problem 6-48 Factor Capital investment Useful life (years) Annual expenses $210,000 $264,000 6 10 $31,000 in the first year and increasing $19,000 in the first year and increasing $2,000 per year thereafter 5.7% per year thereafter $38,000 Market value (end $21,000 of useful life)
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