Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
Question
Book Icon
Chapter 14, Problem 35P

(a):

To determine

Selection of the proposed equipment.

(b):

To determine

Selection of the equipment.

(c):

To determine

Selection of the equipment with new situation.

(d):

To determine

Selection of the equipment with new situation in option d.

Blurred answer
Students have asked these similar questions
K70.
Please no written by hand solution
An equipment cost $90.000 initially. The market value the first year was 80,000 and has been declining at the rate of $6.000 yearly. The O & M costs in year 1 were $7.000 and have been increasing by $2.000 from year 2. Determine the minimum cost life of this equipment for a MARR of 10 %. Based on the chart below, a. what is the economic life of this piece of equipment. b. What is the minimum economic cost? OM cost PWCost Year Cost Salvage EUAC 90000 1 7000 $96,363.64 80000 ($26,000.00) 9000 $103,801.65 74000 (524.571.43) 3 11000 $112,066.12 68000 ($24.519.64) 4 13000 $120,945.29 62000 ($24.795.52) 15000 $130,259.11 56000 ($25,189.37) 6 17000 $139,855.17 50000 (525.631.41) 7 19000 $149.605.17 44000 (526.091.88) 8 21000 $159,401.83 38000 ($26,556.05) 9. 23000 $169,156.07 32000 ($27,015.85) 10 25000 $178,794.65 26000 (527.466.63) O a. 6 years b. $27,466.63 O a. 8 years b. $80.000 O a. 3 years b. $25,519.64 O a. 10 years b. $24.664.99
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning