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A heating system: • requires an initial investment of $7000 • creates $500 annual operating cost at a constant rate and on continuous basis, • returns a salvage value of $2000 at the end of 8 years of use. Under 8% nominal MARR that compounds continuously, calculate the net present cost. Chooset A $8648.79 B) $8783.27 c) $8836.08 D) $8725.46

A heating system: • requires an initial investment of $7000 • creates $500 annual operating cost at a constant rate and on continuous basis, • returns a salvage value of $2000 at the end of 8 years of use. Under 8% nominal MARR that compounds continuously, calculate the net present cost. Chooset A $8648.79 B) $8783.27 c) $8836.08 D) $8725.46

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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MARR QUESTION

A heating system: • requires an initial investment of $7000 • creates $500 annual operating cost at a constant rate and on continuous basis, • returns a salvage value of $2000 at the end of 8 years of use. Under 8% nominal MARR that compounds continuously, calculate the net present cost. Choose the closest value to your answer. A) $8648.79 B) $8783.27 $8836.08 D $8725.46 E) $8899.81
Transcribed Image Text:A heating system: • requires an initial investment of $7000 • creates $500 annual operating cost at a constant rate and on continuous basis, • returns a salvage value of $2000 at the end of 8 years of use. Under 8% nominal MARR that compounds continuously, calculate the net present cost. Choose the closest value to your answer. A) $8648.79 B) $8783.27 $8836.08 D $8725.46 E) $8899.81
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