! Required information Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It needs replacement equipment to streamline one of its production lines for a new contract, but it plans to sell the equipment at or before its expected life is reached at an estimated market value for used equipment. Select between the two options using the corporate MARR of 15% per year and a future worth analysis for the expected use period. Option First Cost AOC, per Year Expected Market Value Expected Use The future worth of option D is $ The future worth of option E is $ Option (Click to select) is selected. D $-73,000 $-13,000 $9,750 3 years E $-83,000 $-33,000 $10,750 6 years

! Required information Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It needs replacement equipment to streamline one of its production lines for a new contract, but it plans to sell the equipment at or before its expected life is reached at an estimated market value for used equipment. Select between the two options using the corporate MARR of 15% per year and a future worth analysis for the expected use period. Option First Cost AOC, per Year Expected Market Value Expected Use The future worth of option D is $ The future worth of option E is $ Option (Click to select) is selected. D $-73,000 $-13,000 $9,750 3 years E $-83,000 $-33,000 $10,750 6 years

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
Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It needs replacement equipment to
streamline one of its production lines for a new contract, but it plans to sell the equipment at or before its
expected life is reached at an estimated market value for used equipment.
Select between the two options using the corporate MARR of 15% per year and a future worth analysis for the expected use period.
Option
First Cost
AOC, per Year
Expected Market Value
Expected Use
The future worth of option D is $
The future worth of option E is $
Option (Click to select) is selected.
D
$-73,000
$-13,000
$9,750
3 years
E
$-83,000
$-33,000
$10,750
6 years

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