engineering economic) A contractor gets a large project that is expected to last for 10 years, during which the project takes a special tool that he does not have. There are two offers of tools to the contractor, both of which can meet their needs, namely: Determine which tool is more profitable to buy based on i = 15% by using: a. Annual Value Analysis with repeatability assumption b. Annual Value Analysis with the purchase price of alternative X at the time of replacement there is an increase of 20%
engineering economic) A contractor gets a large project that is expected to last for 10 years, during which the project takes a special tool that he does not have. There are two offers of tools to the contractor, both of which can meet their needs, namely: Determine which tool is more profitable to buy based on i = 15% by using: a. Annual Value Analysis with repeatability assumption b. Annual Value Analysis with the purchase price of alternative X at the time of replacement there is an increase of 20%
Chapter1: Making Economics Decisions
Section: Chapter Questions
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(engineering economic )
A contractor gets a large project that is expected to last for 10 years, during which the project takes a special tool that he does not have. There are two offers of tools to the contractor, both of which can meet their needs, namely:
Determine which tool is more profitable to buy based on i = 15% by using:
a. Annual Value Analysis with repeatability assumption
b. Annual Value Analysis with the purchase price of alternative X at the time of replacement there is an increase of 20%
Transcribed Image Text:Alternative
Y
Rp. 160.000.000
Rp. 40.000.000
Rp. 3.000.000
10 year
Purchase Price
Rp. 100.000.000
• Salvage value
Annual maintenance fee
Useful life
5 year
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