Scientific Instruments, Inc. uses a MARR of 8% per year. The company is evaluating a new process to reduce water effluents from its manufacturing processes. The estimate associated with the process follows. New Process: First Cost, $ -40,000 NCF, S per year 13,000 Salvage value, S 5000 Life, years 3. In evaluating the process on the basis of a rate of return analysis, the correct equation to use is: Select one O a. Any of the answers are correct O b. 0= - 40,000 + 13,000( P/A, i,3) • 5000( P/F, i,3) O c. On - 40,000( F/P,i 3) + 13,000( F/AL 3) + 5000 O d. 0= - 40,000( A/Pi 3) + 13,000 + 5000( A/F, i,3)

Fundamentals Of Construction Estimating
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Author:Pratt, David J.
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Scientific Instruments, Inc. uses a MARR of 8% per year. The company is evaluating a new process to reduce water effluents from its manufacturing
processes. The estimate associated with the process follows.
New Process
First Cost, $
-40,000
NCF, S per year 13,000
Salvage value, S 5000
Life. years
In evaluating the process on the basis of a rate of return analysis, the correct equation to use is:
Select one
O a. Any of the answers are correct
O b. 0= - 40,000 + 13,000( P/A, i,3) + 5000( P/F, i,3)
Oc. 0= - 40,000( F/Pi 3) + 13,000( F/A.i 3) + 5000
O d. 0= - 40,000( A/Pi 3) + 13,000 + 5000( A/F, i,3)
Transcribed Image Text:Scientific Instruments, Inc. uses a MARR of 8% per year. The company is evaluating a new process to reduce water effluents from its manufacturing processes. The estimate associated with the process follows. New Process First Cost, $ -40,000 NCF, S per year 13,000 Salvage value, S 5000 Life. years In evaluating the process on the basis of a rate of return analysis, the correct equation to use is: Select one O a. Any of the answers are correct O b. 0= - 40,000 + 13,000( P/A, i,3) + 5000( P/F, i,3) Oc. 0= - 40,000( F/Pi 3) + 13,000( F/A.i 3) + 5000 O d. 0= - 40,000( A/Pi 3) + 13,000 + 5000( A/F, i,3)
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