Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 11% per year. Platform First cost, $ million M & O, $ million per year Salvage value, $ million Estimated life, years X -300 -320 75 20 Y -450 -290 50 20 elect platform X, Y, or Z using tabulated factors. he present worth of platform X is $- atform Z is $- million. he platform selected based on the present worth is platform X Z -510 -230 90 20 million, the present worth of platform Y is $- million, and the present worth of

Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 11% per year. Platform First cost, $ million M & O, $ million per year Salvage value, $ million Estimated life, years X -300 -320 75 20 Y -450 -290 50 20 elect platform X, Y, or Z using tabulated factors. he present worth of platform X is $- atform Z is $- million. he platform selected based on the present worth is platform X Z -510 -230 90 20 million, the present worth of platform Y is $- million, and the present worth of

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
PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for
three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 11% per year.
Platform
First cost, $ million
M & O, $ million per year
Salvage value, $ million
Estimated life, years
X
-300
-320
75
20
➤4252
-450
-290
50
20
Select platform X, Y, or Z using tabulated factors.
The present worth of platform X is $-
platform Z is $-
million.
The platform selected based on the present worth is platform X
Z
-510
-230
90
20
million, the present worth of platform Y is $-
million, and the present worth of

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