QUESTION 5 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%. First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: C-AW for machine C = 15000 19,270 4,000 Machine B 30000 6,000 5,000 Machine C 13,172 4,000 1,000

QUESTION 5 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%. First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: C-AW for machine C = 15000 19,270 4,000 Machine B 30000 6,000 5,000 Machine C 13,172 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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5.24 You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $160,000, an operating cost of $7000 per quarter, and a salvage value of $40,000 after its 2-year life. Package L has a first cost of $210,000 with a lower operating cost of $5000 per quarter, and an estimated $26,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 8% per year, compounded quarterly?
For th below two machines and based on AW analysis which machine we should select? MARR=10% Machine A Machine B 26612 12417 4135 Life, years 3 Answer the below question: B- the AW for machine B= First cost, $ Annual cost, $/year Salvage value, $ 140454 7170 infinite
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