First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ Machine R -250,000 -40,000 4 20,000 Machine S -370.500 -50,000 3 20,000

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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1) A ski resort wishes to evaluate two alternative machines for ski and board tuning. Select the best alternative using the AW
method at 6% per year.
Machine R Machine S
Annual operating cost, $ per year
-40.000
-50,000
Life, years
3
Salvage value, $
20.000
Transcribed Image Text:1) A ski resort wishes to evaluate two alternative machines for ski and board tuning. Select the best alternative using the AW method at 6% per year. Machine R Machine S Annual operating cost, $ per year -40.000 -50,000 Life, years 3 Salvage value, $ 20.000
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