Engineering Economy (16th Edition) - Standalone book
Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 2, Problem 22P
To determine

What can be done for the given situation.

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A salesman from vendor A, who is trying to get his foot in the door at Filerbee, Inc., offered water desalting equipment for $2.1 million. This is $400,000 more than the price that a saleswoman from vendor B offered, if purchased and paid for now. However, as a special offer, vendor A said Filerbee won’t have to pay until the warranty runs out. If the equipmenthas a 2-year warranty, determine which offer is better. The company’s real MARR is 12% per year and the inflation rate is 4% per year.
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The monthly demand for ice cans being manufactured by Mr. Cruz is 3k pieces. With a manually guillotine, the unit cutting cost is $50.00. An electrically operated hydraulic guillotine was offered to Mr. Cruz at a price of $350 and which will cut by 25% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Cruz be able to recover of the machine if he decides to buy now?
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