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
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Tax significance of depreciation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Structural Analysis
Structural Analysis
Civil Engineering
ISBN:
9781337630931
Author:
KASSIMALI, Aslam.
Publisher:
Cengage,
Structural Analysis (10th Edition)
Structural Analysis (10th Edition)
Civil Engineering
ISBN:
9780134610672
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Principles of Foundation Engineering (MindTap Cou…
Principles of Foundation Engineering (MindTap Cou…
Civil Engineering
ISBN:
9781337705028
Author:
Braja M. Das, Nagaratnam Sivakugan
Publisher:
Cengage Learning
Fundamentals of Structural Analysis
Fundamentals of Structural Analysis
Civil Engineering
ISBN:
9780073398006
Author:
Kenneth M. Leet Emeritus, Chia-Ming Uang, Joel Lanning
Publisher:
McGraw-Hill Education
Sustainable Energy
Sustainable Energy
Civil Engineering
ISBN:
9781337551663
Author:
DUNLAP, Richard A.
Publisher:
Cengage,
Traffic and Highway Engineering
Traffic and Highway Engineering
Civil Engineering
ISBN:
9781305156241
Author:
Garber, Nicholas J.
Publisher:
Cengage Learning