Titan manufactures and sells gas powered electricity generators, It can purchase a new fine of fuel injectors from elther of two companies: A or B. The AOCand annual savings estimates are availoble, but the savings estimete is unreilabie at this time. Use an AW analysis ot MARR= 10% per year to determine if the selection between A and B changes when the estimated savings varles as much as 140% from the best estimates, and if so, at whet percentage in the estimate? Use tabulated factors Company First cost. $ AOC, $ por year Savings best estimate, $ per year Salvage value,S Life, years 44,000 7,500 15,000 5,000 15 -35,000 8,000 (13,000 3.700 Yes O. the selection between A and 8 changes O when the estimated savings is +40% of the best estimate O

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Titan manufactures and sells gas-powered electricity generators. It can purchase a new fine of fuel injectors from either of two
companies: A or B. The AOCand annual savings estimates are availoble, but the savings estimete is unrelabie at this time. Use an AW
analysis at MARR= 10% per year to determine if the selection between A and B changes when the estimated savings varles as much
as 240% from the best estimates, and if so, at whet percentage in the estimate? Use tabulated factors.
Company
First cost, $
ded
AOC, $ por year
44,000
7,500
15,000
5,000
-35,000
8,000
(13,000
3700
Savings best estimate, $ per year
Salvage value,S
Life, years
Yes
O. the selection between A and 8 changes O when the estimated savings is +40% of the best estimate O
Transcribed Image Text:Titan manufactures and sells gas-powered electricity generators. It can purchase a new fine of fuel injectors from either of two companies: A or B. The AOCand annual savings estimates are availoble, but the savings estimete is unrelabie at this time. Use an AW analysis at MARR= 10% per year to determine if the selection between A and B changes when the estimated savings varles as much as 240% from the best estimates, and if so, at whet percentage in the estimate? Use tabulated factors. Company First cost, $ ded AOC, $ por year 44,000 7,500 15,000 5,000 -35,000 8,000 (13,000 3700 Savings best estimate, $ per year Salvage value,S Life, years Yes O. the selection between A and 8 changes O when the estimated savings is +40% of the best estimate O
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