3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative A B Capital investment $272.000 $346.000 Annual expenses Useful life (years) Salvage value 28.800 19,300 25,000 40.000 Show that the same selection is made for the following methods: a. RORAI method b. AWC method c. EUAC method

3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative A B Capital investment $272.000 $346.000 Annual expenses Useful life (years) Salvage value 28.800 19,300 25,000 40.000 Show that the same selection is made for the following methods: a. RORAI method b. AWC method c. EUAC method

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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