Financial information about graders planned to be purchased is presented in the table below. Calculate the net present values of the machines with the least common multiple (LCM) approach. Choose the economically most suitable grader. MARR is specified as 16%. Purchase costs (TL) Annual repair-maintenance cost (TL) Major repair-maintenance (TL) Annual income (TL) Salvage value (end of 4th year) (TL) Economic life (years) Machine A 220.000+ 12.500*X 5.000 15.000 (at 3rd year) 110.000+ 2.000*Y 50.000 Machine B 300.000+ 14.500*Y 3.500 12.000 (at 3rd year) 140.000 + 1.200*X 70.000 6

Financial information about graders planned to be purchased is presented in the table below. Calculate the net present values of the machines with the least common multiple (LCM) approach. Choose the economically most suitable grader. MARR is specified as 16%. Purchase costs (TL) Annual repair-maintenance cost (TL) Major repair-maintenance (TL) Annual income (TL) Salvage value (end of 4th year) (TL) Economic life (years) Machine A 220.000+ 12.500X 5.000 15.000 (at 3rd year) 110.000+ 2.000Y 50.000 Machine B 300.000+ 14.500Y 3.500 12.000 (at 3rd year) 140.000 + 1.200X 70.000 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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