6 A manufacturing engineered to compare two equipment and choose the most economic one using PVC averysis. The estimated costs and benefits are given below for each equement. Each aumentawith Determine which one should be selected using interestper yearEquipment1110,00018.00045.0002160.00021,000Installed cost, $Operating cont, SyearBenefits, s/yearEquipment is recommandent because the incremental rato between Equipment 1 and 2 in 0.59Equment recommended because the incremental BC ratio between Equipment 2 and 1031.Coupment recommended because the incremental rato between Equipment 1 and 2 178Equipment is recommended because the incremental BVC rato between Equipment 2 and 11:39

Benefit Cost Ratio refers to the ratio of the present value of all the benefits and the present…

Amanitaching engineered to compare two equcment and use the most economic one using analysis The estimated costs and benefits are given below for each equement. Each aument has 10-year with salvage value Determine which should be using interest rate of 15% per year Equipment 2 160.000 21,000 Installed cost, $ 1 110,000 18.000 Operating cont, s/year Benefits, s/year 45,000 63.000 Equipment is recommandait because the cremental rato between Equipment 1 and 2 in 0.59 OEpment is recommended because the incremental BC rato between Equipment 2 and 1031. Coupman 1 recommended because the incremental 80 rato between Equipment 1 and 2 179 Equipment is recommended because the incremental BC ratio between Equipment 2 and 113

Amanitaching engineered to compare two equcment and use the most economic one using analysis The estimated costs and benefits are given below for each equement. Each aument has 10-year with salvage value Determine which should be using interest rate of 15% per year Equipment 2 160.000 21,000 Installed cost, $ 1 110,000 18.000 Operating cont, s/year Benefits, s/year 45,000 63.000 Equipment is recommandait because the cremental rato between Equipment 1 and 2 in 0.59 OEpment is recommended because the incremental BC rato between Equipment 2 and 1031. Coupman 1 recommended because the incremental 80 rato between Equipment 1 and 2 179 Equipment is recommended because the incremental BC ratio between Equipment 2 and 113

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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