For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions : A- PW for machine A= 23,979 8,679 4,000 Machine B 30000 6,000 5,000 Machine C 10000 4,000 1,000

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 3
For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10%
First cost, $
Annual cost, $/year
Salvage value, $
Life, years
Machine A
Answer the below questions:
A- PW for machine A=
23,979
8,679
4,000
Machine B
30000
6,000
5,000
Machine C
10000
4,000
1,000
Transcribed Image Text:Question 3 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: A- PW for machine A= 23,979 8,679 4,000 Machine B 30000 6,000 5,000 Machine C 10000 4,000 1,000
Expert Solution
Step 1

Repeatability Assumption is used when the machines have unequal lives. The comparison of the PW of machines will be over a time frame equal to the least common multiple (LCM) of their estimated lives.

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