A pump is required for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site, otherwise a gasoline engine will be used. Based on the following data and a 7% interest rate, determine Gasoline Eclectic First Cost $3400 S6000 Annual operating cost $1200 $750 Annual maintenance $300 S50 Salvage value $300 S600 Life, in years 5 10 1-The present worth of the electric alternative is $ 2-The present worth of the gasoline alternative is $ 3-The recommended alternative is

A pump is required for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site, otherwise a gasoline engine will be used. Based on the following data and a 7% interest rate, determine Gasoline Eclectic First Cost $3400 S6000 Annual operating cost $1200 $750 Annual maintenance $300 S50 Salvage value $300 S600 Life, in years 5 10 1-The present worth of the electric alternative is $ 2-The present worth of the gasoline alternative is $ 3-The recommended alternative is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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