A $40,000 machine will be purchased by a company whose interest rate is 12% APR, compounded daily. The installation cost is $5.000 and disposal costs are insignificant. If needed, use an MARR to 2 decimal places. Algebraic signs matter! ΕΟΥ MV(N), $ O&M, $/yr. 1 30,000 years 10,000 2 -23,306 dollars, $ 24,000 13,500 b. What is the associated EUAC (TAW) for the ESL? -24.872 dollars. $ 3 21,000 16,000 4 17,500 a. Based on the problem data, what is the economic service life, ESL, of the machine? 17,000 5 10,000 21,000 c. If the machine is kept in service to the ESL calculated in part a, what is the TAW for using the machine in EOY 1?

A $40,000 machine will be purchased by a company whose interest rate is 12% APR, compounded daily. The installation cost is $5.000 and disposal costs are insignificant. If needed, use an MARR to 2 decimal places. Algebraic signs matter! ΕΟΥ MV(N), $ O&M, $/yr. 1 30,000 years 10,000 2 -23,306 dollars, $ 24,000 13,500 b. What is the associated EUAC (TAW) for the ESL? -24.872 dollars. $ 3 21,000 16,000 4 17,500 a. Based on the problem data, what is the economic service life, ESL, of the machine? 17,000 5 10,000 21,000 c. If the machine is kept in service to the ESL calculated in part a, what is the TAW for using the machine in EOY 1?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A $40,000 machine will be purchased by a company whose interest rate is 12% APR, compounded daily. The installation cost is
$5.000 and disposal costs are insignificant.
If needed, use an MARR to 2 decimal places. Algebraic signs matter!
ΕΟΥ
MV(N), $
O&M, $/yr.
4
1
30,000
years
10,000
2
-23,306 dollars, $
24,000
13,500
b. What is the associated EUAC (TAW) for the ESL?
-24,872 dollars, $
3
21,000
16,000
4
a. Based on the problem data, what is the economic service life, ESL, of the machine?
17,500
17,000
5
10,000
21,000
c. If the machine is kept in service to the ESL calculated in part a, what is the TAW for using the machine in EOY 1?

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