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ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ -800,000 Equipment replacement cost in -300.000 year 2. $ Annual operating cost, $/year -950,000 Salvage value, $ Life, years 250,000 4 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors. The equivalent annual cost of the project is $-
Transcribed Image Text:Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ -800,000 Equipment replacement cost in -300.000 year 2. $ Annual operating cost, $/year -950,000 Salvage value, $ Life, years 250,000 4 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors. The equivalent annual cost of the project is $-
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