Solve the Engineering Economics Problem: Project Feasibility Indicator Using Annual Worth Analysis, which alternative is more economical? i=10% Method A First Cost: -Php250,000 Annual Cost: -Php 90,000 Salvage Value: Php 30,000 Life: 3years Method B First Cost: -Php13

Solve the Engineering Economics Problem: Project Feasibility Indicator Using Annual Worth Analysis, which alternative is more economical? i=10% Method A First Cost: -Php250,000 Annual Cost: -Php 90,000 Salvage Value: Php 30,000 Life: 3years Method B First Cost: -Php13

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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Question

Solve the Engineering Economics Problem: Project Feasibility Indicator

Using Annual Worth Analysis, which alternative is more economical? i=10%

Method A

First Cost: -Php250,000
Annual Cost: -Php 90,000
Salvage Value: Php 30,000
Life: 3years

Method B

First Cost: -Php130,000
Annual Cost: -Php 25,000
Salvage Value: Php150,000
Life: infinity

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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