A bakery needs to replace its old oven that has broken. It is considering the following options. Use MARR-8%. Initial Cost Annual operating cost Salvage Value Useful Life Question 10 Gwater comnா பிள்ள Con multiple Analyspried that is equal to any of the alternatives lives The longest period from the alternatives Question 11 b) Based on your answer in part a, what would be the analysis period we would need for this problem? a) When the useful lives of alternatives differ, we can use the of their useful lives it we are doing present worth analysis Question 12 C Sil need to compute and use the answer in part a Do not need to use the answer from part a, if we assume identical replacements C Cannot compute the annual worth analysis Oven A Question 13 $4500 What is the annual equivalent cost for oven A using the useful ire? Round to the nearest integer $700 c) If we do annual worth analysis instead of present worth analysis when alternatives have unequal useful lives, we $1000 4 years Oven B $7000 $500 $1500 6 years

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Chapter1: Making Economics Decisions
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A bakery needs to replace its old oven that has broken. It is considering the following options. Use MARR-8%.
Initial Cost
Annual operating cost
Salvage Value
Useful Life
Question 10
Graber common divisor
Last common multiples
An analysis period that is equal to any of the alternatives' lives
The longest period from the alternatives
a) When the useful lives of alternatives differ, we can use the of their useful lives it we are doing present worth analysis
Question 11
b) Based on your answer in part a, what would be the analysis period we would need for this problem?
Question 12
Still need to compute and use the answer in parta
Do not need to use the answer from part a, if we assume identical replacements
C Cannot compute the annual worth analysis
Oven A
Question 13
$4500
d) What is the annual equivalent cost for oven A using the useful life? Round to the nearest integer
$700
c) If we do annual worth analysis instead of present worth analysis when alternatives have unequal useful lives, we-
$1000
4 years
Oven B
$7000
$500
$1500
6 years
Transcribed Image Text:A bakery needs to replace its old oven that has broken. It is considering the following options. Use MARR-8%. Initial Cost Annual operating cost Salvage Value Useful Life Question 10 Graber common divisor Last common multiples An analysis period that is equal to any of the alternatives' lives The longest period from the alternatives a) When the useful lives of alternatives differ, we can use the of their useful lives it we are doing present worth analysis Question 11 b) Based on your answer in part a, what would be the analysis period we would need for this problem? Question 12 Still need to compute and use the answer in parta Do not need to use the answer from part a, if we assume identical replacements C Cannot compute the annual worth analysis Oven A Question 13 $4500 d) What is the annual equivalent cost for oven A using the useful life? Round to the nearest integer $700 c) If we do annual worth analysis instead of present worth analysis when alternatives have unequal useful lives, we- $1000 4 years Oven B $7000 $500 $1500 6 years
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