The table that follows shows the present worth values of the costs associated with using a presently owned machine (the defender) and a possible replacement (the challenger) for different numbers of years. Determine when the defender should be replaced using an interest rate of 10% per year and a 5- year study period. Show solutions using a spreadsheet. The PW value in $ Is: If in Service This Number of Years 1 2 3 4 Defender -30,000 -75,000 -125,000 -166,000 217000 Challenger -89,000 -50,000 -102,000 -113,000 140.000

The table that follows shows the present worth values of the costs associated with using a presently owned machine (the defender) and a possible replacement (the challenger) for different numbers of years. Determine when the defender should be replaced using an interest rate of 10% per year and a 5- year study period. Show solutions using a spreadsheet. The PW value in $ Is: If in Service This Number of Years 1 2 3 4 Defender -30,000 -75,000 -125,000 -166,000 217000 Challenger -89,000 -50,000 -102,000 -113,000 140.000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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