Using the PW analysis on the basis of their capitalized cost to compare the Mutually Exclusive (ME) alternatives below at a rate of 10% per year. What is the capitalized cost of machine A? Machine A Machine B 1st Cost $12,000 8000 Operating cost/Yr 3500 2500 Salvage Value 3500 1000 Life infinite 5 O a. $-47,000 O b. S-42,580 O. S+33,000 O d. S-44,466

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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QUESTION 1
Using the PW analysis on the basis of their capitalized cost to compare the Mutually Exclusive (ME) alternatives below at a rate of 10% per year. What is the capitalized cost of machine
A?
Machine A
Machine B
1st Cost
$12,000
8000
Operating cost/Yr
3500
2500
Salvage Value
3500
1000
Life
infinite
5
O a. $-47,000
O b. $-42,580
O. $+33,000
O d. $-44,466
Transcribed Image Text:QUESTION 1 Using the PW analysis on the basis of their capitalized cost to compare the Mutually Exclusive (ME) alternatives below at a rate of 10% per year. What is the capitalized cost of machine A? Machine A Machine B 1st Cost $12,000 8000 Operating cost/Yr 3500 2500 Salvage Value 3500 1000 Life infinite 5 O a. $-47,000 O b. $-42,580 O. $+33,000 O d. $-44,466
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