Homework Help is Here – Start Your Trial Now!
Business
Economics
A contractor has a 4-year concrete mixer whose first cost was S6,000, having 3 more years to live before being serapped and sold at S872. It could now be sold for S14,109. It has an annual cost for operation and maintenance of $6,479. Its replacement is being proposed with a new machine whose first cost will be S8.000 having a life of 9 years and salvage value S1.600. It has an operating cost of Sso0 per year and maintenance cost of S320 per year. If the interest is 23% epd-a, what is the Anaual Equivalent Cost of the Old Machine?

A contractor has a 4-year concrete mixer whose first cost was S6,000, having 3 more years to live before being serapped and sold at S872. It could now be sold for S14,109. It has an annual cost for operation and maintenance of $6,479. Its replacement is being proposed with a new machine whose first cost will be S8.000 having a life of 9 years and salvage value S1.600. It has an operating cost of Sso0 per year and maintenance cost of S320 per year. If the interest is 23% epd-a, what is the Anaual Equivalent Cost of the Old Machine?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

21

A contractor has a 4-year conerete mixer whose first cost was S6,000, having 3 more years to live before being serapped and sold at $872. It could now be sold for S14,109. It has an annual cost for operation and maintenance of S6,479. Its replacement is being proposed with a new machine whose first cost will be $8,000 having a life of 9 years and salvage value S1.600. It has an operating cost of Ss00 per year and maintenance cost of $320 per year. If the interest is 23% epd-a, what is the Annual Equivalent Cost of the Old Machine?
Transcribed Image Text:A contractor has a 4-year conerete mixer whose first cost was S6,000, having 3 more years to live before being serapped and sold at $872. It could now be sold for S14,109. It has an annual cost for operation and maintenance of S6,479. Its replacement is being proposed with a new machine whose first cost will be $8,000 having a life of 9 years and salvage value S1.600. It has an operating cost of Ss00 per year and maintenance cost of $320 per year. If the interest is 23% epd-a, what is the Annual Equivalent Cost of the Old Machine?
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Public Policy
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS