Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 11, Problem 12P

(a):

To determine

Sensitivity analysis with MARR.

(b):

To determine

Sensitivity analysis with Market value.

(c):

To determine

Sensitivity analysis with Market value.

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Multivariable Unconstrained Optimization. Solve for the critical values and check for the sufficiency condition for a maximum. 1. TR = P,Q1 + P2Q2, TC = (Q1?)/2 + 2Q,Q2 + Q2? %3D
Barney need to choose between two equipment for his project. Equipment A: First cost = 200,000.00, Annual Operating Cost = 32,000.00 , Annual Labor Cost = 50,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. Equipment B: First cost = 300,000.00, Annual Operating Cost = 24,000.00 , Annual Labor Cost = 32,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. If the minimum required rate of return is 15%, what is the equivalent uniform annual cost of Equipment B?   a. P126,070 b. P124,030 c. P129,850 d. P130,870
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