We are buying a machine for cleaning up the seawater which is contaminated with oil spill. Compare the following three alternatives by adopting the incremental ROR analysis when MARR = 10%. Use PW method after you calculate the incremental values. Which one should we select? 7,8 Machine 1 Machine 2 Machine 3 First cost, $ Annual operating cost, $ Life, years -5,000 -3,000 -6,500 -2,500 5 -8,500 -2,000 5 P.

ENGR.ECONOMIC ANALYSIS
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We are buying a machine for cleaning up the seawater which is contaminated with oil spill.
Compare the following three alternatives by adopting the incremental ROR analysis when
MARR = 10%. Use PW method after you calculate the incremental values. Which one should
we select?
7,8
Machine 1
Machine 2
First cost, $
Annual operating cost, $
Life, years
Machine 3
-5,000
-3,000
5
-6,500
-2,500
5
-8,500
-2,000
20
సబం లణంం
Transcribed Image Text:We are buying a machine for cleaning up the seawater which is contaminated with oil spill. Compare the following three alternatives by adopting the incremental ROR analysis when MARR = 10%. Use PW method after you calculate the incremental values. Which one should we select? 7,8 Machine 1 Machine 2 First cost, $ Annual operating cost, $ Life, years Machine 3 -5,000 -3,000 5 -6,500 -2,500 5 -8,500 -2,000 20 సబం లణంం
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