Craig Nuts Inc. will need to invest in a new nut cracking machine. The plant engineer has gathered the following data regarding the apparent best option. Calculate the future value of the alternative if the MARR is equal to 7% First Cost $250,000 • Annual Benefits $73,000 the first year and decreasing by $1,200 each year thereafter • Annual O & M (Operation and Maintenance) Costs $28,000 the first year and increasing by $1,600 each year thereafter Salvage Value 42,000 Useful Life 6 years a. The Net Future Worth of this investment =?

Craig Nuts Inc. will need to invest in a new nut cracking machine. The plant engineer has gathered the following data regarding the apparent best option. Calculate the future value of the alternative if the MARR is equal to 7% First Cost $250,000 • Annual Benefits $73,000 the first year and decreasing by $1,200 each year thereafter • Annual O & M (Operation and Maintenance) Costs $28,000 the first year and increasing by $1,600 each year thereafter Salvage Value 42,000 Useful Life 6 years a. The Net Future Worth of this investment =?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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