CFRP FRC First cost, $ -205,000 - 235,000 Maintenance cost, $/year -29,000 -27,000 Salvage value, $ Life, years 2,000 20,000 2 4

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Virgin Galactic is considering two materials for certain parts in a re-useable space vehicle: carbon fiber reinforced plastic (CFRP) and fiber reinforced ceramic (FRC). The costs are shown below. Which should be selected on the basis of a present worth comparison at an interest rate of 10% per year? Solve using (a) tabulated factors, and (b) single-cell spreadsheet functions.

CFRP
FRC
First cost, $
-205,000
- 235,000
Maintenance cost, $/year
-29,000
-27,000
Salvage value, $
Life, years
2,000
20,000
2
4
Transcribed Image Text:CFRP FRC First cost, $ -205,000 - 235,000 Maintenance cost, $/year -29,000 -27,000 Salvage value, $ Life, years 2,000 20,000 2 4
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