Question#5: An engineer needs to decide on whether it is economically feasible to buy an equipment or not. Use the present worth method to determine the maximum purchasing cost of the equipment for it to be economically feasible if the annual MARR=15% Item Purchasing Cost (S) Annual Revenue (S) Operating Costs (S) Salvage Value (S) Useful Life (years) Value to be determined 6,000 2,000 in the first year, increasing annually by 10% thereafter (i.e. 2,200 in the 2nd year, 2,420 in the 3rd year, 2,662 in the 4th year,... etc.) 5,000 10

Question#5: An engineer needs to decide on whether it is economically feasible to buy an equipment or not. Use the present worth method to determine the maximum purchasing cost of the equipment for it to be economically feasible if the annual MARR=15% Item Purchasing Cost (S) Annual Revenue (S) Operating Costs (S) Salvage Value (S) Useful Life (years) Value to be determined 6,000 2,000 in the first year, increasing annually by 10% thereafter (i.e. 2,200 in the 2nd year, 2,420 in the 3rd year, 2,662 in the 4th year,... etc.) 5,000 10

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 6RQ

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