Machine A has a price of $60,000, annual operating cost of $24,000, and life of 5 years. Machine B has a price of $120,000, annual operating cost of $12,000, and life of 10 years. At MARR=10% per year, use EAC and PW to choose the better machine. (a) Using EAC, which machine would you choose? (b) Using PW, which machine would you

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter12: Pricing Masonry, Carpentry, And Finishes Work
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Machine A has a price of $60,000, annual
operating cost of $24,000, and life of 5 years.
Machine B has a price of $120,000, annual
operating cost of $12,000, and life of 10 years.
At MARR=10% per year, use EAC and PW to
choose the better machine.
(a) Using EAC, which machine would you
choose?
(b) Using PW, which machine would you
choose?
Transcribed Image Text:Machine A has a price of $60,000, annual operating cost of $24,000, and life of 5 years. Machine B has a price of $120,000, annual operating cost of $12,000, and life of 10 years. At MARR=10% per year, use EAC and PW to choose the better machine. (a) Using EAC, which machine would you choose? (b) Using PW, which machine would you choose?
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