Subject : Economy and Engineering Management 11.Compare the alternatives shown on the basis of their capitalized costs using aninterest rate of 10% per year.Alternative M Alternative NFirst cost, RMAnnual Operating Cost, RM per yearSalvage value, RMLife, years150,00050,0008,000800,00012,0001,000,0005

As per the questions alternatives need to be evaluated based on Capitalized cost (CC), which refers…

Compare the alternatives shown on the basis of their capitalized costs using an erest rate of 10% per year. Alternative M | Alternative N First cost, RM | Annual Operating Cost, RM per year Salvage value, RM Life, years 150,000 50,000 8,000 800,000 12,000 1,000,000 5

Compare the alternatives shown on the basis of their capitalized costs using an erest rate of 10% per year. Alternative M | Alternative N First cost, RM | Annual Operating Cost, RM per year Salvage value, RM Life, years 150,000 50,000 8,000 800,000 12,000 1,000,000 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Subject : Economy and Engineering Management

11.
Compare the alternatives shown on the basis of their capitalized costs using an
interest rate of 10% per year.
Alternative M Alternative N
First cost, RM
Annual Operating Cost, RM per year
Salvage value, RM
Life, years
150,000
50,000
8,000
800,000
12,000
1,000,000
5

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