ning plant. If the canning company uses an in rate of 12%, which is the best alternative? Use! to make your decision. (Note: Consider the common multiple as the study period.) Machine $52,000 $63,000 $67,0 15,000 First cost Maintenance and operating costs Annual benefit 9,000 12,0 37,0 22,0 38,000 31,000 Salvage value Useful life, in vears 13,000 19,000 12

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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i The following costs are associated with three tomato-
peeling machines being considered for use in a can-
ning plant. If the canning company uses an interest
rate of 12%, which is the best alternative? Use NPW
to make your decision. (Note: Consider the least
common multiple as the study period.)
Machine
A
$52,000 $63.000 $67,000
9,000
First cost
Maintenance and
15,000
12,000
operating costs
Annual benefit
38,000 31,000
13,000
19,000
37,000
Salvage value
Useful life,
22,000
12
in years
Transcribed Image Text:i The following costs are associated with three tomato- peeling machines being considered for use in a can- ning plant. If the canning company uses an interest rate of 12%, which is the best alternative? Use NPW to make your decision. (Note: Consider the least common multiple as the study period.) Machine A $52,000 $63.000 $67,000 9,000 First cost Maintenance and 15,000 12,000 operating costs Annual benefit 38,000 31,000 13,000 19,000 37,000 Salvage value Useful life, 22,000 12 in years
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