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$43,000 31,000 $25,000 18,500 $11,000 $15,500 25,000 11,000 ne icon to view the interest and annulty table for discrete compounding when the MARR is 12% per year. of the challenger for a service life of 2 yoars is 651 160 550 720 l cost of keeping the defender in service for one more year is 720

$43,000 31,000 $25,000 18,500 $11,000 $15,500 25,000 11,000 ne icon to view the interest and annulty table for discrete compounding when the MARR is 12% per year. of the challenger for a service life of 2 yoars is 651 160 550 720 l cost of keeping the defender in service for one more year is 720

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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The following table presents cash flow data for a challenger and defender in replacement analysis. The defender can be kept in service for a maximum of one more year. On the other hand, the challenger, If it replaces the defender now, it wll have a useful life of two years. Based on a MARR of 12% per year, answer the following two questions: Challenger Defender Year Market Value O&M Costs Market Value O&M Costs $43,000 S25,000 1 $11,000 $15,500 31,000 25,000 18,500 2 11,000 E Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The EUAC of the challenger for a service life of 2 years is O A. $24,651 O B. $28, 160 Oc. $17,550 O D. $20,720 The marginal cost of keeping the defender in service for one more year is O A. $24,220 OB. $25,000 O C. $23,500 O D. $22,000
Transcribed Image Text:The following table presents cash flow data for a challenger and defender in replacement analysis. The defender can be kept in service for a maximum of one more year. On the other hand, the challenger, If it replaces the defender now, it wll have a useful life of two years. Based on a MARR of 12% per year, answer the following two questions: Challenger Defender Year Market Value O&M Costs Market Value O&M Costs $43,000 S25,000 1 $11,000 $15,500 31,000 25,000 18,500 2 11,000 E Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The EUAC of the challenger for a service life of 2 years is O A. $24,651 O B. $28, 160 Oc. $17,550 O D. $20,720 The marginal cost of keeping the defender in service for one more year is O A. $24,220 OB. $25,000 O C. $23,500 O D. $22,000
The following table presents cash flow data for a challenger and defender in replacement analysis. The defender can be kept in service for a maximum of one more year. On the other hand, the challenger, If it replaces the defender now, it wll have a useful life of two years. Based on a MARR of 12% per year, answer the following two questions: Challenger Defender Year Market Value O&M Costs Market Value ORM Costs $43,000 $25,000 E Click the icon to view the interest and annuity table fo More Info Discrete Compounding; /= 12% The EUAC of the challenger fora service life of 2 years is Single Payment Uniform Serles Compound Amount Compound Amount Sinking Fund Capital Recovery O A. $24,651 Present Present Ов. 328,160 Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P Given A To Find F To Find P To Find A To Find A Oc. $17,550 Given P Given F Given A Given F Given P D. $20,720 FIP PIF FIA PIA AIF AIP 0.8929 0.7972 1.0000 2.1200 1.1200 0.8929 1.0000 1.1200 The marginal cost of keeping the defender in service for or 2 1.2544 1.6901 0.4717 0.5917 1.4049 1.5735 3 0.7118 3.3744 2.4018 0.2963 0.4163 O A. $24,220 4 0.6355 4.7793 3.0373 0.2092 0.3292 OB. $25,000 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 O C. $23,500 O D. $22,000 Print Done
Transcribed Image Text:The following table presents cash flow data for a challenger and defender in replacement analysis. The defender can be kept in service for a maximum of one more year. On the other hand, the challenger, If it replaces the defender now, it wll have a useful life of two years. Based on a MARR of 12% per year, answer the following two questions: Challenger Defender Year Market Value O&M Costs Market Value ORM Costs $43,000 $25,000 E Click the icon to view the interest and annuity table fo More Info Discrete Compounding; /= 12% The EUAC of the challenger fora service life of 2 years is Single Payment Uniform Serles Compound Amount Compound Amount Sinking Fund Capital Recovery O A. $24,651 Present Present Ов. 328,160 Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P Given A To Find F To Find P To Find A To Find A Oc. $17,550 Given P Given F Given A Given F Given P D. $20,720 FIP PIF FIA PIA AIF AIP 0.8929 0.7972 1.0000 2.1200 1.1200 0.8929 1.0000 1.1200 The marginal cost of keeping the defender in service for or 2 1.2544 1.6901 0.4717 0.5917 1.4049 1.5735 3 0.7118 3.3744 2.4018 0.2963 0.4163 O A. $24,220 4 0.6355 4.7793 3.0373 0.2092 0.3292 OB. $25,000 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 O C. $23,500 O D. $22,000 Print Done
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