Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
Question
Book Icon
Chapter 6, Problem 3P
To determine

Calculate the annual worth.

Blurred answer
Students have asked these similar questions
A company owns a fleet of trucks and operates its own maintenance shop. A particular type of truck, generally used for five years, has an initial cost of $75,000 and a salvage value of $15,000. Maintenance cost is $5,000 per year, and it increases by $2000 yearly. Assuming interest at 10%, find the equivalent annual cost of owning and maintaining the truck.
Q2. A machine has an initial purchase cost of $100,000, an annual operation and maintenance cost of $2,000, a life of 10 years, and a salvage value of $20,000. At the end of years 4 and 8, it requires a major service (overhaul), which costs $20,000 and $15,000 respectively. What is the present equivalent cost of owning and operating this machine if the interest rate is 10% per year?
Deere Construction just purchased a new track hoe attachment costing $12,500. The CFO, John,expects the implement will be used for five years when it is estimated to have a salvage value of$4,000. Maintenance costs are estimated to be $0 the first year and will increase by $100 eachyear thereafter. If a 12% interest rate is used, what is the equivalent uniform annual cost of theimplement?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education