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 38P

The manager of engineering at the 900-megawatt Hamilton Nuclear Power Plant has three options to supply personal safety equipment to employees. Two are vendors who sell the items, and the third alternative is to rent the equipment for $50,000 per year, but for no more than 3 years per contract. These items have relatively short lives due to constant use. The MARR is 10% per year.

Chapter 4, Problem 38P, The manager of engineering at the 900-megawatt Hamilton Nuclear Power Plant has three options to

  1. a. Select from the two vendors using the LCM and PW analysis.
  2. b. Determine which of the three options is cheaper over a study period of 3 years.
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