6-56 Dick Dickerson Construction, Inc. has asked you to help them select a new backhoe. You have a choice between a wheel-mounted version, which costs $60,000 and has an expected life of 5 years and a salvage value of $2000, and a track-mounted one, which costs $80,000, with a 7-year life and an expected salvage value of $10,000. Both machines will achieve the same productivity. Interest is 8%. Which one will you recommend? Use an annual worth analysis.

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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6-56) Dick Dickerson Construction, Inc. has asked you
to help them select a new backhoe. You have a
choice between a wheel-mounted version, which
costs $60,000 and has an expected life of 5 years
and a salvage value of $2000, and a track-mounted
one, which costs $80,000, with a 7-year life and an
expected salvage value of $10,000. Both machines
will achieve the same productivity. Interest is 8%.
Which one will you recommend? Use an annual
worth analysis.
Transcribed Image Text:6-56) Dick Dickerson Construction, Inc. has asked you to help them select a new backhoe. You have a choice between a wheel-mounted version, which costs $60,000 and has an expected life of 5 years and a salvage value of $2000, and a track-mounted one, which costs $80,000, with a 7-year life and an expected salvage value of $10,000. Both machines will achieve the same productivity. Interest is 8%. Which one will you recommend? Use an annual worth analysis.
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