A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site. Otherwise a gasoline engine will be used. Use a present worth cash flow analysis, using the following data and a 10% interest rate, to determine how the pump should be powered. Calculate PWgas (present worth for gasoline option) and PWelectric (present worth for electric option). First Cost Annual Operating cost Annual Maintenance Salvage value Life in years Select one: O All other answers are wrong Gasoline $2400 1200 300 OPWgas = O PWgas = O PWgas = O PW gas = 300 Which of the following statements is the best answer 5 Electric $6000 750 50 600 10 $7,900; PW electric = - - $10,685; Choose gasoline pump $15,550; PWelectric = $17,588; Choose gasoline pump $10,508; PWelectric = $9,685; Choose electric pump $12,805; PWelectric = $10,685; Choose electric pump

A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site. Otherwise a gasoline engine will be used. Use a present worth cash flow analysis, using the following data and a 10% interest rate, to determine how the pump should be powered. Calculate PWgas (present worth for gasoline option) and PWelectric (present worth for electric option). First Cost Annual Operating cost Annual Maintenance Salvage value Life in years Select one: O All other answers are wrong Gasoline $2400 1200 300 OPWgas = O PWgas = O PWgas = O PW gas = 300 Which of the following statements is the best answer 5 Electric $6000 750 50 600 10 $7,900; PW electric = - - $10,685; Choose gasoline pump $15,550; PWelectric = $17,588; Choose gasoline pump $10,508; PWelectric = $9,685; Choose electric pump $12,805; PWelectric = $10,685; Choose electric pump

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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