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using all three methods compare between machines A ,B ,and C and draw each cash flow diagram 1) presnt worth analysis 2) annual worth analysis 3) future worth analysis Machine Alnitial cost = 10000$ Operating cost/year = 2000$Life time= 2 years Salvage = 1500$Machine B Initial cost = 15000$ Operating cost /year= 1000$+ yearly increment Yearly increment= 10% of operating cost Life time= 3 yearsSalvage= 2000$Machine C Initial cost= 25000$ Operating cost = 1000$ -yearly decrement Yearly decrement = 100$Life time = 4 years %3D Salvage = 3000$

using all three methods compare between machines A ,B ,and C and draw each cash flow diagram 1) presnt worth analysis 2) annual worth analysis 3) future worth analysis Machine Alnitial cost = 10000$ Operating cost/year = 2000$Life time= 2 years Salvage = 1500$Machine B Initial cost = 15000$ Operating cost /year= 1000$+ yearly increment Yearly increment= 10% of operating cost Life time= 3 yearsSalvage= 2000$Machine C Initial cost= 25000$ Operating cost = 1000$ -yearly decrement Yearly decrement = 100$Life time = 4 years %3D Salvage = 3000$

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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using all three methods compare between machines A ,B ,and C and draw each cash flow diagram 1) presnt worth analysis 2) annual worth analysis 3) future worth analysis Machine Alnitial cost = 10000$ Operating cost/year 2000$Life time= 2 years Salvage = 1500$Machine B Initial cost = 15000$ Operating cost /year= 1000$+ yearly increment Yearly increment= 10% of operating cost Life time= 3 yearsSalvage= 2000$Machine C Initial cost= 25000$ Operating cost = 1000$ -yearly decrement Yearly decrement = 100$Life time = 4 years Salvage = 3000$
Transcribed Image Text:using all three methods compare between machines A ,B ,and C and draw each cash flow diagram 1) presnt worth analysis 2) annual worth analysis 3) future worth analysis Machine Alnitial cost = 10000$ Operating cost/year 2000$Life time= 2 years Salvage = 1500$Machine B Initial cost = 15000$ Operating cost /year= 1000$+ yearly increment Yearly increment= 10% of operating cost Life time= 3 yearsSalvage= 2000$Machine C Initial cost= 25000$ Operating cost = 1000$ -yearly decrement Yearly decrement = 100$Life time = 4 years Salvage = 3000$
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