Titan manufactures and sells gas powered electricity generators, It can purchase a new fine of fuel injectors from elther of two companies: A or B. The AOCand annual savings estimates are availoble, but the savings estimete is unreilabie at this time. Use an AW analysis ot MARR= 10% per year to determine if the selection between A and B changes when the estimated savings varles as much as 140% from the best estimates, and if so, at whet percentage in the estimate? Use tabulated factors Company First cost. $ AOC, $ por year Savings best estimate, $ per year Salvage value,S Life, years 44,000 7,500 15,000 5,000 15 -35,000 8,000 (13,000 3.700 Yes O. the selection between A and 8 changes O when the estimated savings is +40% of the best estimate O

Titan manufactures and sells gas powered electricity generators, It can purchase a new fine of fuel injectors from elther of two companies: A or B. The AOCand annual savings estimates are availoble, but the savings estimete is unreilabie at this time. Use an AW analysis ot MARR= 10% per year to determine if the selection between A and B changes when the estimated savings varles as much as 140% from the best estimates, and if so, at whet percentage in the estimate? Use tabulated factors Company First cost. $ AOC, $ por year Savings best estimate, $ per year Salvage value,S Life, years 44,000 7,500 15,000 5,000 15 -35,000 8,000 (13,000 3.700 Yes O. the selection between A and 8 changes O when the estimated savings is +40% of the best estimate O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

please provide correct answer it would great help

Titan manufactures and sells gas-powered electricity generators. It can purchase a new fine of fuel injectors from either of two
companies: A or B. The AOCand annual savings estimates are availoble, but the savings estimete is unrelabie at this time. Use an AW
analysis at MARR= 10% per year to determine if the selection between A and B changes when the estimated savings varles as much
as 240% from the best estimates, and if so, at whet percentage in the estimate? Use tabulated factors.
Company
First cost, $
ded
AOC, $ por year
44,000
7,500
15,000
5,000
-35,000
8,000
(13,000
3700
Savings best estimate, $ per year
Salvage value,S
Life, years
Yes
O. the selection between A and 8 changes O when the estimated savings is +40% of the best estimate O

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