Problem 2. You have been asked to compare the two quotes for a security system that will surround a remote power distribution substation. The received quotes provide the expected lifespan of the both systems, but based upon weather conditions at the substation your company plans to trade out the entire security system every 7 years. Compare the two alternatives using annual worth analysis and an interest rate of 10% per year. First cost, $ Annual O&M, $ Salvage Value, $ Life, years Secquer System -25,000 -9,000 3000 15 Protekt System -33,000 -6,500 5,000 20

Problem 2. You have been asked to compare the two quotes for a security system that will surround a remote power distribution substation. The received quotes provide the expected lifespan of the both systems, but based upon weather conditions at the substation your company plans to trade out the entire security system every 7 years. Compare the two alternatives using annual worth analysis and an interest rate of 10% per year. First cost, $ Annual O&M, $ Salvage Value, $ Life, years Secquer System -25,000 -9,000 3000 15 Protekt System -33,000 -6,500 5,000 20

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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