6.33 Liquid Sleeve, Inc. is a company that makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pres- sures, or inadequate lubrication. The manager is considering adding a metal-based nanoparticle (Type Al or Fe) to its solution to increase the prod- uct's performance at high temperatures. The costs associated with each type are estimated. If the company's MARR is 20% per year, which nanopar- ticle type should the company select? Utilize a rate of return analysis. Туре Fe Туре Al First cost, $ -150,000 -280,000 Annual operating cost, Slyear -92,000 -74,000 Salvage value, $ Life, years 30,000 70,000 4

6.33 Liquid Sleeve, Inc. is a company that makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pres- sures, or inadequate lubrication. The manager is considering adding a metal-based nanoparticle (Type Al or Fe) to its solution to increase the prod- uct's performance at high temperatures. The costs associated with each type are estimated. If the company's MARR is 20% per year, which nanopar- ticle type should the company select? Utilize a rate of return analysis. Туре Fe Туре Al First cost, $ -150,000 -280,000 Annual operating cost, Slyear -92,000 -74,000 Salvage value, $ Life, years 30,000 70,000 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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