A gasoline driven pump and an electric pump are being considered for a use in a mine. If the minimum rate, of return is 12%. Annual taxes all in 3%.                                 Gas        Elect                                 Gas        Elect First cost             12000     25000   Life in  Years           5              10        Salvage Value       1000      2000 Annual O.Cost       3200     1800 Annual Repairs      600        400

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter9: Pricing Construction Equipment
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A gasoline driven pump and an electric pump are being considered for a use in a mine. If the minimum rate, of return is 12%. Annual taxes all in 3%.

                                Gas        Elect                                 Gas        Elect

First cost             12000     25000   Life in  Years           5              10       

Salvage Value       1000      2000

Annual O.Cost       3200     1800

Annual Repairs      600        400

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