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

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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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