Consider buying a new Boiler that costs $3799, its annual O&M cost is 12% of the investment cost, new burner that costs $714 needs to be installed every 5 years, for a period of 15 years and interest rate of 7%, what will be the present value for the replacement cost "S"? Select one: A. 941.78 B. 731.62 C. 799.73 D. 872.03✔ E. 1007.86

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Need Step by step solution. Operation & Maintenance (O &m)
Consider buying a new Boiler that costs $3799, its annual O&M
cost is 12% of the investment cost, new burner that costs $714
needs to be installed every 5 years, for a period of 15 years and
interest rate of 7%, what will be the present value for the
replacement cost "$"?
Select one:
A. 941.78
B. 731.62
OC. 799.73
D. 872.03 ✓
E. 1007.86
Transcribed Image Text:Consider buying a new Boiler that costs $3799, its annual O&M cost is 12% of the investment cost, new burner that costs $714 needs to be installed every 5 years, for a period of 15 years and interest rate of 7%, what will be the present value for the replacement cost "$"? Select one: A. 941.78 B. 731.62 OC. 799.73 D. 872.03 ✓ E. 1007.86
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