Perform present worth analysis with the costs shown below to select the best altermative. The MARR is 12 per year. Machine A 1000 Machine B *1000 Purchase cost $52 $63 Annual cost $15 /year 59 /year Annual benefit $38 /year $31 year Salvage value $13 $19 Useful life 4 years years

Perform present worth analysis with the costs shown below to select the best altermative. The MARR is 12 per year. Machine A 1000 Machine B *1000 Purchase cost $52 $63 Annual cost $15 /year 59 /year Annual benefit $38 /year $31 year Salvage value $13 $19 Useful life 4 years years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Perform present worth analysis with the costs shown below to select the best alternative. The MARR is 12% per year.
Machine A 1000
Machine B *1000
Purchase cost
$52
$63
$15/year
$9 /year
$31 Ayear
Annual cost
Annual benefit
$38 /year
$19
Salvage value
Useful life
$13
4 years
S years

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