Question 3 From the given values below, which machine should be selected using (a) Present worth Method and (b) Future worth Method if interest rate is 10% per year? Machine A В Initial Cost (Php) Annual Operating Cost 146,000 220,000 15,000 80,000 10,000 Annual Revenue 75,000 Salvage Value Useful Life (years) 10,000 25,000 3 6.

Question 3 From the given values below, which machine should be selected using (a) Present worth Method and (b) Future worth Method if interest rate is 10% per year? Machine A В Initial Cost (Php) Annual Operating Cost 146,000 220,000 15,000 80,000 10,000 Annual Revenue 75,000 Salvage Value Useful Life (years) 10,000 25,000 3 6.

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: Engineering Economics

Number 3

Question 3
From the given values below, which machine should be selected using (a) Present worth Method
and (b) Future worth Method if interest rate is 10% per year?
Machine
A
В
Initial Cost (Php)
Annual Operating Cost
146,000
220,000
15,000
80,000
10,000
Annual Revenue
75,000
Salvage Value
Useful Life (years)
10,000
25,000
3
6.

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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