rial machine costing produce net casn savings of $4,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR is 10% per year. What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to $2,000 changes in the repair cost. Perform the sensitivity analysis. Fill-in the table below. (Round to one decimal place.) Change in the repair cost - $2,000 IRR 21.05 % Is the project acceptable? Yes

rial machine costing produce net casn savings of $4,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR is 10% per year. What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to $2,000 changes in the repair cost. Perform the sensitivity analysis. Fill-in the table below. (Round to one decimal place.) Change in the repair cost - $2,000 IRR 21.05 % Is the project acceptable? Yes

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Find the ROR using trial and error and linear interpolation for the following: The initial cost at 0 time, P = 280,000 The annual cost (A = 10,000) The salvage at year 10, F = 600,000 n= 10
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Q13 solution need just
The point is NOT at (7,800) or (8.5,1200)
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