8.22 A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 15% per year. VS DS First cost, $ 250,000 225,000 AOC, $ per year 231,000 235,000 Overhaul in year 3, 1 $ 26,000 Overhaul in year 4, $ 39,000 Salvage value, $ 50,000 10,000 Life, years 6 6

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
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ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
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8.22
A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS)
and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the
MARR = 15% per year.
VS
DS
First cost, $
250,000 225,000
AOC, $ per year
231,000 235,000
Overhaul in year 3, 1
$
26,000
Overhaul in year 4, $ 39,000
Salvage value, $
50,000
10,000
Life, years
6
6
Transcribed Image Text:8.22 A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 15% per year. VS DS First cost, $ 250,000 225,000 AOC, $ per year 231,000 235,000 Overhaul in year 3, 1 $ 26,000 Overhaul in year 4, $ 39,000 Salvage value, $ 50,000 10,000 Life, years 6 6
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