An extended rainy season has required many Northwest contractors to upgrade pumps and de-watering devices. The two best alternatives are a used pump (P1) and a new automated dewatering system (P2). The economic estimates for each are shown below. Determine the Annual Worth of each alternative using a MARR = 12%. Based on the Annual Worth analysis, which alternative should be selected? Alterative Pl Capital investment Anr ual expenses Useful life (years) Market value at end of useful life 8,000 7,000 5 4,000 Alternative P2 95,000 20,000 35 16,000

An extended rainy season has required many Northwest contractors to upgrade pumps and de-watering devices. The two best alternatives are a used pump (P1) and a new automated dewatering system (P2). The economic estimates for each are shown below. Determine the Annual Worth of each alternative using a MARR = 12%. Based on the Annual Worth analysis, which alternative should be selected? Alterative Pl Capital investment Anr ual expenses Useful life (years) Market value at end of useful life 8,000 7,000 5 4,000 Alternative P2 95,000 20,000 35 16,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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