What is the Present Worth of Machine A? A firm is considering the purchase of one of two new machines. The data On each are given below. Machine A 3,400 3 yrs 100 2,000/yr Initial Cost Service Life Salvage Value Operating Cost Interest is 12% compounded annually Answer: Machine B 6,500 6 yrs 500 1,800/yr

What is the Present Worth of Machine A? A firm is considering the purchase of one of two new machines. The data On each are given below. Machine A 3,400 3 yrs 100 2,000/yr Initial Cost Service Life Salvage Value Operating Cost Interest is 12% compounded annually Answer: Machine B 6,500 6 yrs 500 1,800/yr

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

What is the Present Worth of Machine A?
A firm is considering the purchase of one of two new machines. The data
On each are given below.
Machine A
3,400
3 yrs
100
2,000/yr
Initial Cost
Service Life
Salvage Value
Operating Cost
Interest is 12% compounded annually
Answer:
Machine B
6,500
6 yrs
500
1,800/yr

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