A manufacturer with a MARR of 20% is considering the installation of one of three packaging machines. The economic parameters of each machine are as follows: Packaging machine: X Y Initial cost ($) 20,000 40,000 Uniform annual benefit ($) 120,000 180,000 Iniform annual OSM cost ($)) 70.000 50.000 Z 15,000 100,000 70.000
A manufacturer with a MARR of 20% is considering the installation of one of three packaging machines. The economic parameters of each machine are as follows: Packaging machine: X Y Initial cost ($) 20,000 40,000 Uniform annual benefit ($) 120,000 180,000 Iniform annual OSM cost ($)) 70.000 50.000 Z 15,000 100,000 70.000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Plz what is correct option?
And I humble request use. Maths tools plZ
![A manufacturer with a MARR of 20% is considering the installation of one of three packaging
machines. The economic parameters of each machine are as follows:
Packaging machine:
Initial cost ($)
Uniform annual benefit ($)
Uniform annual O&M cost ($)
X
Y
20,000
40,000
120,000 180,000
70,000
50,000
6
Service life (years)
3
Salvage value end of life ($) 2,000 4,000
Z
15,000
100,000
70,000
12
2,000
Which choice below gives the correct PW equation for machine X over the appropriate analysis
period?
O PW (costs) = $20k + $20k (P/F,20%,6) + $70k (P/A,20%, 12) - $2k (P/F,20%,6) - $2k (P/F,20%,12)
NPW = [ $120k (P/A,20%, 12) ] - [ $20k + $20k
(P/F,20%,6) + $70k (P/A, 20%, 12) - $2k (P/F,20%,6) - $2k (P/F,20 %,12)]
PW (benefits) = $120k (P/A,20%, 12)
O NPW = ($120k-$70k) (P/A,20%,12)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37090eef-025f-4619-bebd-91b936ece1eb%2Fa7564b4d-46b6-42d6-87fb-0cebe6b660af%2F7j5ey7_processed.png&w=3840&q=75)
Transcribed Image Text:A manufacturer with a MARR of 20% is considering the installation of one of three packaging
machines. The economic parameters of each machine are as follows:
Packaging machine:
Initial cost ($)
Uniform annual benefit ($)
Uniform annual O&M cost ($)
X
Y
20,000
40,000
120,000 180,000
70,000
50,000
6
Service life (years)
3
Salvage value end of life ($) 2,000 4,000
Z
15,000
100,000
70,000
12
2,000
Which choice below gives the correct PW equation for machine X over the appropriate analysis
period?
O PW (costs) = $20k + $20k (P/F,20%,6) + $70k (P/A,20%, 12) - $2k (P/F,20%,6) - $2k (P/F,20%,12)
NPW = [ $120k (P/A,20%, 12) ] - [ $20k + $20k
(P/F,20%,6) + $70k (P/A, 20%, 12) - $2k (P/F,20%,6) - $2k (P/F,20 %,12)]
PW (benefits) = $120k (P/A,20%, 12)
O NPW = ($120k-$70k) (P/A,20%,12)
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