11) Machines that have the following costs are under consideration for a robotized welding process. I the MARR be 13% per year, determine which alternative should be selected on the basis of a PW analysis. Machine a Machine b First Cost $ 250,000 430,000 Annual Operation Cost $ 60,000 Main maintenance Cost $ 15,000 per year 40,000 35,000 each 2 years Salvage Value 70,000 95,000 Life, Year 3 6 a) Draw the cash flow for these projects b) If the time frame of study be 5 years and the Book value of each machine calculate by 10% depreciation per year. What is your decision?

11) Machines that have the following costs are under consideration for a robotized welding process. I the MARR be 13% per year, determine which alternative should be selected on the basis of a PW analysis. Machine a Machine b First Cost $ 250,000 430,000 Annual Operation Cost $ 60,000 Main maintenance Cost $ 15,000 per year 40,000 35,000 each 2 years Salvage Value 70,000 95,000 Life, Year 3 6 a) Draw the cash flow for these projects b) If the time frame of study be 5 years and the Book value of each machine calculate by 10% depreciation per year. What is your decision?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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