1. Hospital is evaluating the purchase of new office eguipment from three vendors. AssumeMARR=15% and 4 year useful life on lall equipment. Select best vendor.Assume: Analysis period = useful life = 4 yrsCompany ACompany BCompany CFirst Cost$15K$25K$20KAnnual O&M1600400900Annual Benefit8K13К11KSalvage Value3K6K4.5K- What is the NPV of company B?If you had $500,000 today in an account earning 10% each year, how much could youwithdraw each year for 25 years?

Answered: 1. Hospital is evaluating the purchase…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Hospital is evaluating the purchase of new office eguipment from three vendors. Assume
MARR=15% and 4 year useful life on lall equipment. Select best vendor.
Assume: Analysis period = useful life = 4 yrs
Company A
Company B
Company C
First Cost
$15K
$25K
$20K
Annual O&M
1600
400
900
Annual Benefit
8K
13К
11K
Salvage Value
3K
6K
4.5K
- What is the NPV of company B?
If you had $500,000 today in an account earning 10% each year, how much could you
withdraw each year for 25 years?

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Hospital is evaluating the purchase of new office equipment from three vendors. Assume MARR=15% and 4 year useful life on all equipment. Select best vendor.

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