The Gadomski School of Engineering is considering the purchase of a new plasma cutter for the St. Benilde Laboratory Building. Economic data for three potential cutters are shown in the table below. Using a MARR of 8% per year, determine which plasma cutter should be selected. Compute all relevant internal rate of return values to two decimal places. Show all of your work! Manufacturer Miller Hypertherm $1,875 $900 $375 Tomahawk $2,850 $1,000 $325 12 $1,200 $450 $400 Initial Cost Salvage Value Annual Cost Life, years 4

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The Gadomski School of Engineering is considering the purchase of a new
plasma cutter for the St. Benilde Laboratory Building. Economic data for three
potential cutters are shown in the table below. Using a MARR of 8% per year,
determine which plasma cutter should be selected. Compute all relevant
internal rate of return values to two decimal places. Show all of your work!
Hypertherm
$1,875
$900
$375
Manufacturer
Miller
Tomahawk
$2,850
$1,000
$325
12
$1,200
$450
$400
4
Initial Cost
Salvage Value
Annual Cost
Life, years
6.
Transcribed Image Text:The Gadomski School of Engineering is considering the purchase of a new plasma cutter for the St. Benilde Laboratory Building. Economic data for three potential cutters are shown in the table below. Using a MARR of 8% per year, determine which plasma cutter should be selected. Compute all relevant internal rate of return values to two decimal places. Show all of your work! Hypertherm $1,875 $900 $375 Manufacturer Miller Tomahawk $2,850 $1,000 $325 12 $1,200 $450 $400 4 Initial Cost Salvage Value Annual Cost Life, years 6.
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