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 В? Machine A Machine B 1st Cst $12,000 8000 Operating cost/Yr 3500 2500 Salvage Value 3500 1000 Life infinite 5 O a. S+33.000 O b. $-44,466 O. S-47,000 O d. S-42,580
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 В? Machine A Machine B 1st Cst $12,000 8000 Operating cost/Yr 3500 2500 Salvage Value 3500 1000 Life infinite 5 O a. S+33.000 O b. $-44,466 O. S-47,000 O d. S-42,580
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Question
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Transcribed Image Text:Using the Present Worth (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 B?
| | Machine A | Machine B |
|----------------|-----------|-----------|
| 1st Cost | $12,000 | $8,000 |
| Operating cost/yr | $3,500 | $2,500 |
| Salvage Value | $3,500 | $1,000 |
| Life | Infinite | 5 |
Options:
- a. $33,000
- b. $44,466
- c. $47,000
- d. $42,580
Expert Solution

Step 1
First cost is also equal to the Replacement cost .
Replacement cost :
It is the cost that has to be pay for replacing the present machine
Step by step
Solved in 2 steps with 1 images

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