An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost $17,000 per year. In addition, an extra $18.5 per hour labor cost will be incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 65 days per year? The MARR is 10% per year. The annual worth of plan 1 lease optimistic is $ -17828 The annual worth of plan 1 most likely is $ -18328 The annual worth of plan 1 pessimistic is $ The annual worth of plan 2 rental is $ Plan 1 lease optimistic is better than rental of plan 2.

An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost $17,000 per year. In addition, an extra $18.5 per hour labor cost will be incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 65 days per year? The MARR is 10% per year. The annual worth of plan 1 lease optimistic is $ -17828 The annual worth of plan 1 most likely is $ -18328 The annual worth of plan 1 pessimistic is $ The annual worth of plan 2 rental is $ Plan 1 lease optimistic is better than rental of plan 2.

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...

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