Required information The TechEdge Corporation offers two forms of 4-year service contracts on its closed-loop water purification system used in the manufacture of semiconductor packages for microwave and high-speed digital devices. The Professional Plan has an initial fee of $56,000 with annual fees starting at $1,000 in contract year 1 and increasing by $500 each year, Alternatively, the Executive Plan costs $62.000 upfront with annual fees starting at $4,500 in contract year 1 and decreasing by $500 each year. The initial charge is considered a setup cost for which there is no salvage value expected. Evaluate the plans at a MARR of 9% per year. Solve using factors. The present worth of the Professional Plan is $-[ The plan selected based on the present worth analysis is the [(Click to select) Plan. and the present worth of the Executive Plan is $-

Required information The TechEdge Corporation offers two forms of 4-year service contracts on its closed-loop water purification system used in the manufacture of semiconductor packages for microwave and high-speed digital devices. The Professional Plan has an initial fee of $56,000 with annual fees starting at $1,000 in contract year 1 and increasing by $500 each year, Alternatively, the Executive Plan costs $62.000 upfront with annual fees starting at $4,500 in contract year 1 and decreasing by $500 each year. The initial charge is considered a setup cost for which there is no salvage value expected. Evaluate the plans at a MARR of 9% per year. Solve using factors. The present worth of the Professional Plan is $-[ The plan selected based on the present worth analysis is the [(Click to select) Plan. and the present worth of the Executive Plan is $-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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