The following costs are associated with three machines being considered for use in a plant. If the interest rate is 12 %, which is the best alternative should be selected? A В C Initial cost 52,000$ 63,000$ 67,000$ Uniform annual BENIFIT 38,000 31,000 37,000 Annual maintenance COST 15,000 9,000 12,000 Salvage value 13000 19,000 22,000 Useful life in years 4 6 12 Assuming i= 10%, determine which alternative should be selected

The following costs are associated with three machines being considered for use in a plant. If the interest rate is 12 %, which is the best alternative should be selected? A В C Initial cost 52,000$ 63,000$ 67,000$ Uniform annual BENIFIT 38,000 31,000 37,000 Annual maintenance COST 15,000 9,000 12,000 Salvage value 13000 19,000 22,000 Useful life in years 4 6 12 Assuming i= 10%, determine which alternative should be selected

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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