Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4, Problem 32P

Two mutually exclusive projects have the estimated cash flows shown. Use a present worth analysis to determine which should be selected at an interest rate of 10% per year.

Chapter 4, Problem 32P, Two mutually exclusive projects have the estimated cash flows shown. Use a present worth analysis to

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You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative X Y First cost, $ −45,000 −58,000 Maintenance cost, $/year −8,000 −4,000 Salvage value, $ 2,000 12,000 Life, years 5 5
What is FW of Design A, Design B, and Design C. Which alternative should be chosen. Do not round off in the solution.

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Basics Of Engineering Economy

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