"There are three machines in the mechancical engineering lab A. B. and Cand need to be evaluated economically. Machine A has a first cost of $4500, an annual operating cost (AOC) of $900, a salvage value of $200, and a service life 4 years. Machine B has a first cost of $3500, an annual operating cost (AOC) of $700, a salvage value of $350 and a service life 4 years. Machine C has a first cost of $6000, an annual operating cost (AOC) of $50, a salvage value of $100, and a service life 8 years. What is the present worth for machine C? The MARR is 10% per year" -$6,250 -$6.222 -$7,002 -$6.300 O o o O
"There are three machines in the mechancical engineering lab A. B. and Cand need to be evaluated economically. Machine A has a first cost of $4500, an annual operating cost (AOC) of $900, a salvage value of $200, and a service life 4 years. Machine B has a first cost of $3500, an annual operating cost (AOC) of $700, a salvage value of $350 and a service life 4 years. Machine C has a first cost of $6000, an annual operating cost (AOC) of $50, a salvage value of $100, and a service life 8 years. What is the present worth for machine C? The MARR is 10% per year" -$6,250 -$6.222 -$7,002 -$6.300 O o o O
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:"There are three machines in the mechancical engineering lab A. B, and C and need to be evaluated economically. Machine A has a first cost of $4500, an annual
operating cost (AOC) of $900, a salvage value of $200, and a service life 4 years. Machine B has a first cost of $3500, an annual operating cost (AOC) of $700, a
salvage value of $350 and a service life 4 years. Machine C has a first cost of $6000, an annual operating cost (AOC) of $50, a salvage value of $100, and a service
life 8 years. What is the present worth for machine C? The MARR is 10% per year"
-$6,250
-$6,222
-$7,002
-$6,300
O O O O
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