Compare Machines A and B by using the MARR = 12% Machine A Machine B First Cost $12,000 $19,000 Annual Operating Cost $1000 $800 Additional maintenance $500 $400 cost every 2 years Salvage Value $2,000 $4,000 Life 8 years 12 years Problem 2: (25 points) Comare Machines A and B on the basis of present worth analysis by using the MARR = 10% Machine A Machine B First Cost $20,000 $10,000 Annual Operating Cost $2,000 $3,000 Salvage Value $4,000 $2,000 Life 6 years 3 years

Compare Machines A and B by using the MARR = 12% Machine A Machine B First Cost $12,000 $19,000 Annual Operating Cost $1000 $800 Additional maintenance $500 $400 cost every 2 years Salvage Value $2,000 $4,000 Life 8 years 12 years Problem 2: (25 points) Comare Machines A and B on the basis of present worth analysis by using the MARR = 10% Machine A Machine B First Cost $20,000 $10,000 Annual Operating Cost $2,000 $3,000 Salvage Value $4,000 $2,000 Life 6 years 3 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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