SABIC purchased a machine for SR 120,000. The machine can be used for two years with salvage value of SR 20,000. The machine will be used for 4000 hours in the first year and 3000 hours in the second year. The saving in the operating cost is expected to be SR 90,000 in the first year and SR 70,000 in the second year. SABIC's MARR is 12%. What is the equivalent saving per hour? O SR 4.59 O SR 3.14 O SR 4.83 SR 5.38

SABIC purchased a machine for SR 120,000. The machine can be used for two years with salvage value of SR 20,000. The machine will be used for 4000 hours in the first year and 3000 hours in the second year. The saving in the operating cost is expected to be SR 90,000 in the first year and SR 70,000 in the second year. SABIC's MARR is 12%. What is the equivalent saving per hour? O SR 4.59 O SR 3.14 O SR 4.83 SR 5.38

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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