Perform a present worth analysis of equal service alternatives with the costs shown below, if the MARR is 8% per year. Revenues for all two alternatives are expected to be the same. Write formula, use compound interest table for extracting factors, show your calculation step by step, and find final result. Alternative 1 Alternative 2 First cost -3000 -4000 Annual operating cost Salvage value Life, years -800 -700 600 700 4 4

Perform a present worth analysis of equal service alternatives with the costs shown below, if the MARR is 8% per year. Revenues for all two alternatives are expected to be the same. Write formula, use compound interest table for extracting factors, show your calculation step by step, and find final result. Alternative 1 Alternative 2 First cost -3000 -4000 Annual operating cost Salvage value Life, years -800 -700 600 700 4 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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