A mechanical engineer is considering two materials for use in an electrical vehicle. All estimates are made. Material X Material Y First cost, RM Maintenance Cost, RM per year Salvage value, RM Life, years 15,000 35,000 7,000 9,000 2,000 20,000 5 5 a) Suggest which alternative should be selected with 10% interest rate. b) Find out at what first cost the method not selected above will become the more economics preference.
A mechanical engineer is considering two materials for use in an electrical vehicle. All estimates are made. Material X Material Y First cost, RM Maintenance Cost, RM per year Salvage value, RM Life, years 15,000 35,000 7,000 9,000 2,000 20,000 5 5 a) Suggest which alternative should be selected with 10% interest rate. b) Find out at what first cost the method not selected above will become the more economics preference.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Subject : Economy and Engineering Management
![A mechanical engineer is considering two materials for use in an electrical vehicle. All
estimates are made.
Material X
Material Y
First cost, RM
Maintenance Cost, RM per year
Salvage value, RM
Life, years
15,000
35,000
7,000
9,000
2,000
20,000
5
5
a)
Suggest which alternative should be selected with 10% interest rate.
b)
Find out at what first cost the method not selected above will become the more
economics preference.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F540793eb-a56b-4b09-8afa-5310c0bfd224%2F77c0771d-7e16-4bc4-8990-dbffe5de0e02%2Fnfy4o9i_processed.png&w=3840&q=75)
Transcribed Image Text:A mechanical engineer is considering two materials for use in an electrical vehicle. All
estimates are made.
Material X
Material Y
First cost, RM
Maintenance Cost, RM per year
Salvage value, RM
Life, years
15,000
35,000
7,000
9,000
2,000
20,000
5
5
a)
Suggest which alternative should be selected with 10% interest rate.
b)
Find out at what first cost the method not selected above will become the more
economics preference.
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