Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4, Problem 13P
To determine

Calculate the present worth.

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White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $766,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $160,000. The company’s MARR is 25% per year.   The equivalent annual cost of the installed equipment is $−
A Company purchased equipment that has two year warranty and AOC = $1500 per year, beginning in year 3 and continuing through the equipment's 10-year life. What is the approximate PW of the operating cost if the interest rate is 9%?
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Basics Of Engineering Economy

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