A В C First cost, $ million -200 -350 -475 Annual cost, $ million per year -450 -275 -400 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Chevron Corporation has a capital and exploratory budget for oil and gas production of $19.6 billion in one year. The Upstream Division has a project in Angola for which three offshore platform equipment alternatives are identified. Use the present worth method to select the best alternative at 12% per year.

A
В
C
First cost, $ million
-200
-350
-475
Annual cost, $ million per year
-450
-275
-400
Salvage value, $ million
75
50
90
Estimated life, years
20
20
20
Transcribed Image Text:A В C First cost, $ million -200 -350 -475 Annual cost, $ million per year -450 -275 -400 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20
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