A presently owned machine has the projected market value and M&O costs shown below. At an interest rate of 10% per year, the AW for keeping the machine 2 more years is closest to: (a) $29,650 (b) $32,840 (c) $35,770 (d ) $39,720 Year Market Value, $ M&O Cost, $ 0 32,000 — 1 25,000 24,000 2 14,000 24,000 3 10,000 26,000 4 8,000 29,000

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A presently owned machine has the projected market
value and M&O costs shown below. At an interest
rate of 10% per year, the AW for keeping the
machine 2 more years is closest to: (a) $29,650 (b) $32,840
(c) $35,770 (d ) $39,720
Year Market Value, $ M&O Cost, $
0 32,000 —
1 25,000 24,000
2 14,000 24,000
3 10,000 26,000
4 8,000 29,000

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