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ther building air exhausts. can be made by two different methods. Method X will have a first cost of $75,000. n operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method Y will have a first cost of 140,000. an operating cost of $24,000 per year, and a $19,000 salvage value after its 4-year life. At an interest ate of 10% per year. which method should be used on the basis of an annual worth analysis? TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Amount Present Sinking Fund Compound Capital Recovery A/P Present Gradient Present Worth Gradient Worth PA Worth Uniform Series A/G Amount FP PF A/F F/A P/G L1000 1.00000 10000 11000 12100 0.47619 57619 17355 2.49 21000 13310 07513 030211 33100 G40211 23291 830 0.21547 3.199 43781 13812 0.16380 0230 3.7108 63618

ther building air exhausts. can be made by two different methods. Method X will have a first cost of $75,000. n operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method Y will have a first cost of 140,000. an operating cost of $24,000 per year, and a $19,000 salvage value after its 4-year life. At an interest ate of 10% per year. which method should be used on the basis of an annual worth analysis? TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Amount Present Sinking Fund Compound Capital Recovery A/P Present Gradient Present Worth Gradient Worth PA Worth Uniform Series A/G Amount FP PF A/F F/A P/G L1000 1.00000 10000 11000 12100 0.47619 57619 17355 2.49 21000 13310 07513 030211 33100 G40211 23291 830 0.21547 3.199 43781 13812 0.16380 0230 3.7108 63618

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Polypropylene wall caps, used for covering exterior vents for kitchen cooktops. bathroom fans, dryers, and other building air exhausts. can be made by two different methods. Method X will have a first cost of $75,000. an operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method Y will have a first cost of $140,000. an operating cost of $24,000 per year, and a $19,000 salvage value after its 4-year life. At an interest rate of 10% per year, which method should be used on the basis of an annual worth analysis? 10% TABLE 15 Discrete Cash Flow: Compound interest Factors 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Amount Capital Recovery Present Sinking Fund Compound Amount Present Gradient Gradient Worth Worth Present Worth Uniform Series F/P P/F A/F F/A A/P P/A P/G A/G L1000 110000 0.9091 09091 08264 10000 0.47619 0.30211 10000 04762 0.9366 12100 21000 0.57619 0.40211 1.7355 13310 0.7513 3.3100 2.4869 23291 14641 06830 0.21547 4,6410 031547 3.1699 43781 13812 5 16105 0.6209 0.16380 6.1051 026380 3.7908 6.8618 18101 Select one: a. Use Method x b. Comparison can not be made using AW Analysis. C. Use Method Y The symbols represent one-time ocurrences. Select one: O a. Fand A O b. Pand F C.A and i d. Pand A
Transcribed Image Text:Polypropylene wall caps, used for covering exterior vents for kitchen cooktops. bathroom fans, dryers, and other building air exhausts. can be made by two different methods. Method X will have a first cost of $75,000. an operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method Y will have a first cost of $140,000. an operating cost of $24,000 per year, and a $19,000 salvage value after its 4-year life. At an interest rate of 10% per year, which method should be used on the basis of an annual worth analysis? 10% TABLE 15 Discrete Cash Flow: Compound interest Factors 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Amount Capital Recovery Present Sinking Fund Compound Amount Present Gradient Gradient Worth Worth Present Worth Uniform Series F/P P/F A/F F/A A/P P/A P/G A/G L1000 110000 0.9091 09091 08264 10000 0.47619 0.30211 10000 04762 0.9366 12100 21000 0.57619 0.40211 1.7355 13310 0.7513 3.3100 2.4869 23291 14641 06830 0.21547 4,6410 031547 3.1699 43781 13812 5 16105 0.6209 0.16380 6.1051 026380 3.7908 6.8618 18101 Select one: a. Use Method x b. Comparison can not be made using AW Analysis. C. Use Method Y The symbols represent one-time ocurrences. Select one: O a. Fand A O b. Pand F C.A and i d. Pand A
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