Midland Metalworking is examining a 750-tonne hydraulic press and a 600-tonne moulding press for purchase. Midland has enough in its budget for only one of them. If Midland's MARR is 14percent and the relevant information is as given below, which press should it purchase? Use an annual worth comparisonHydraulic Press$270,000$31,000$23,500$2500, increasing by 15% each $700, increasing by $350 eachyear thereafteryear thereafterLife15 years$19,500Salvage ValueClick the icon to view the table of compound interest factors for discrete compounding periods when i 14%The annual worth of the moulding press is 5 Midland should choose theInitial CostAnnual SavingsAnnual Maintenance CostThe annual worth for the hydraulic press is(Round to the nearest cent as needed)Moulding Press$210,00011 years$15,800

The annual worth is the equivalent uniform annual cost of an asset over its life cycle.It is…

Midland Metalworking is examining a 750-tonne hydraulic press and a 600-tonne moulding press for purchase. Midland has enough in its budget for only one of them i Midlands MARR percent and the relevant information is as given below, which press should it purchase? Use an annual worth comparison Initial Cost Annual Savings Annual Maintenance Cost Hydraulic Press $270,000 $31,000 $23,500 $2500, increasing by 15% each $700, increasing by $350 each year thereafter year thereafter 15 years $19.500 11 years $15,800 Moulding Press $210,000 Life Salvage Value Click the icon to view the table of compound interest factors for discrete compounding periods when -14% The annual worth of the moulding press is Midand should choose the The annual worth for the hydraulic press is 5 (Round to the nearest cent as needed)

Midland Metalworking is examining a 750-tonne hydraulic press and a 600-tonne moulding press for purchase. Midland has enough in its budget for only one of them i Midlands MARR percent and the relevant information is as given below, which press should it purchase? Use an annual worth comparison Initial Cost Annual Savings Annual Maintenance Cost Hydraulic Press $270,000 $31,000 $23,500 $2500, increasing by 15% each $700, increasing by $350 each year thereafter year thereafter 15 years $19.500 11 years $15,800 Moulding Press $210,000 Life Salvage Value Click the icon to view the table of compound interest factors for discrete compounding periods when -14% The annual worth of the moulding press is Midand should choose the The annual worth for the hydraulic press is 5 (Round to the nearest cent as needed)

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

Midland Metalworking is examining a 750-tonne hydraulic press and a 600-tonne moulding press for purchase. Midland has enough in its budget for only one of them. If Midland's MARR is 14
percent and the relevant information is as given below, which press should it purchase? Use an annual worth comparison
Hydraulic Press
$270,000
$31,000
$23,500
$2500, increasing by 15% each $700, increasing by $350 each
year thereafter
year thereafter
Life
15 years
$19,500
Salvage Value
Click the icon to view the table of compound interest factors for discrete compounding periods when i 14%
The annual worth of the moulding press is 5 Midland should choose the
Initial Cost
Annual Savings
Annual Maintenance Cost
The annual worth for the hydraulic press is
(Round to the nearest cent as needed)
Moulding Press
$210,000
11 years
$15,800

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