4. Help me answer the given question. Do not round off answers while solving, instead just the final answer will be rounded off to two decimal places. A European candy manufacturing plant manager must select a new irradiation system to ensure the safety of specific ingredients,while being economical. The two alternatives available have the following estimates:SystemFirst Cost, $CFBT, $ per YearLife, YearsAAdd your answer-120,00060,0003B-75,00020,0005The company is in the 35% tax bracket and assumes classical straight line depreciation for alternative comparisons performed at anafter-tax minimum acceptable rate of return (MARR) of 8% per year. A salvage value of zero is used when depreciation is calculated;however, system B can be sold after 5 years for an estimated 10% of its first cost. System A has no anticipated salvage value.Determine which is more economical using an annual worth (AW) analysis worked by hand.The annual worth for system B, (in $)Round to the nearest two (2) decimal places

Given information For A First cost=120000 CFBT per year=60000 Life=3 Salvage value=0 For B First…

A European candy manufacturing plant manager must select a new irradiation system to ensure the safety of specific ingredients, while being economical. The two alternatives available have the following estimates: System First Cost, $ CFBT, $ per year Life, Years A -120,000 60,000 3 B -75,000 20,000 5

A European candy manufacturing plant manager must select a new irradiation system to ensure the safety of specific ingredients, while being economical. The two alternatives available have the following estimates: System First Cost, $ CFBT, $ per year Life, Years A -120,000 60,000 3 B -75,000 20,000 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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