Andrew is considering buyng a new taming tractor for ha tarm. He has a choice between a John-Deere-XP tractor and a Sunfower-FT tractor. Andrew has a MARR of B%. John-Deere-XP: First Cost $150,000. Life: 10 years, zero salvage value at the end of 10 years Annual Expense (maintenance, charging, etc.) $3,000. First Cost $200,000. Life: 15 years, zero salvage value at the end of 15 years Annual Expense (maintenance, charging, etc.) $3,500. Sunflower-FT For a 10-year study period, what salvage value for the extra 5 years of ie for Sunfower-FT would resut in that both tractors are equivalent in Present Worth? S80,0158 O$115,190. S87,734.1 OS96,133.6 O$105,266

Andrew is considering buyng a new taming tractor for ha tarm. He has a choice between a John-Deere-XP tractor and a Sunfower-FT tractor. Andrew has a MARR of B%. John-Deere-XP: First Cost $150,000. Life: 10 years, zero salvage value at the end of 10 years Annual Expense (maintenance, charging, etc.) $3,000. First Cost $200,000. Life: 15 years, zero salvage value at the end of 15 years Annual Expense (maintenance, charging, etc.) $3,500. Sunflower-FT For a 10-year study period, what salvage value for the extra 5 years of ie for Sunfower-FT would resut in that both tractors are equivalent in Present Worth? S80,0158 O$115,190. S87,734.1 OS96,133.6 O$105,266

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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