FIRST COST ANNUAL OPERATING COST SALVAGE VALUE LIFE MACHINE A 11,483 3,565 1,089 6 YEARS MACHINE B 18,000 3,100 2,000 9 YEARS 1) If money is worth 15%, what is the Total Annual Cost of Machine A (using Annual Worth Method)?

FIRST COST ANNUAL OPERATING COST SALVAGE VALUE LIFE MACHINE A 11,483 3,565 1,089 6 YEARS MACHINE B 18,000 3,100 2,000 9 YEARS 1) If money is worth 15%, what is the Total Annual Cost of Machine A (using Annual Worth Method)?

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

14. TOPIC: ENGINEERING ECONOMICS
PLEASE ANSWER IN 4 DECIMAL POINTS

FIRST COST
ANNUAL OPERATING COST
SALVAGE VALUE
LIFE
MACHINE A
11,483
3,565
1,089
6 YEARS
MACHINE
B
18,000
3,100
2,000
9 YEARS
1) If money is worth 15%, what is the Total Annual Cost of Machine A (using Annual Worth Method)?

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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