An investment of $20.000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR Is 15% per year, the equation that can be used to solve for i is: 0 = -20,000 + 7000(PIAI3) + 8000(P/F,.3) Select one: O True False

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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An investment of $20.000 in new equipment will generate income of $7000 per year for 3 years, at which time
the machine can be sold for an estimated $8000. If the company's MARR Is 15% per year, the equation that can
be used to solve for i is: 0 = -20,000 + 700O(P/A.I".3) + 8000(P/F,1".3)
Select one:
True
False
The PW method allows analysis over the respective alternative lives.
Select one:
•True
O False
In the B/C analysis equation, to calculate the cost (C). we use the minus sign ahead of costs.
Select one:
a. True
b. False
To satisfy equal-service requirement for PW comparisons, we use:
Select one:
O a. no need to compare alternatives for equal life service.
O b. study period approach
O C. LCM approach
O d. either LCM or specified study period approach.
Transcribed Image Text:An investment of $20.000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR Is 15% per year, the equation that can be used to solve for i is: 0 = -20,000 + 700O(P/A.I".3) + 8000(P/F,1".3) Select one: True False The PW method allows analysis over the respective alternative lives. Select one: •True O False In the B/C analysis equation, to calculate the cost (C). we use the minus sign ahead of costs. Select one: a. True b. False To satisfy equal-service requirement for PW comparisons, we use: Select one: O a. no need to compare alternatives for equal life service. O b. study period approach O C. LCM approach O d. either LCM or specified study period approach.
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