Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ Equipment replacement cost in year 2, $ Annual operating cost, $/year Salvage value, $ Life, years -800,000 -300,000 -850,000 250,000 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors, The equivalent annual cost of the project is S-

Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ Equipment replacement cost in year 2, $ Annual operating cost, $/year Salvage value, $ Life, years -800,000 -300,000 -850,000 250,000 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors, The equivalent annual cost of the project is S-

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

Required information
A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows
estimated.
First cost, $
Equipment replacement cost in
year 2, $
Annual operating cost, $/year
Salvage value, $
Life, years
-800,000
-300,000
-850,000
250,000
4
At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors.
The equivalent annual cost of the project is $-[

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