Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be sélected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,397,151 534,579 Annual operating cost, $ per year 90,383 32,000 Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 8. EGN 3212 - Ec PW for Process A-
Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be sélected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,397,151 534,579 Annual operating cost, $ per year 90,383 32,000 Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 8. EGN 3212 - Ec PW for Process A-
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![QUESTION 8
Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should
be selected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year?
Answer the below questions to select the best Option.
Process A
Process B
First cost, $
1,397,151
534,579
Annual operating cost, $ per
year
90,383
32,000
Salvage value, $
80,000
130,000
Update cost at year 2, $
15,000
Life, years
4
8
EGN 3212 - Eco
PW for Process A-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7098bddf-bf37-48e8-b188-574f414dd9e9%2F669e4a7c-4279-4e2a-8465-21c51615ff2e%2F6qrqacp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 8
Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should
be selected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year?
Answer the below questions to select the best Option.
Process A
Process B
First cost, $
1,397,151
534,579
Annual operating cost, $ per
year
90,383
32,000
Salvage value, $
80,000
130,000
Update cost at year 2, $
15,000
Life, years
4
8
EGN 3212 - Eco
PW for Process A-
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