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

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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