2. Machine A has a price of $60,000, annual operating cost of $24,000, and life of 5 years. Machine B has a price of $120,000, annual operating cost of $12,000, and life of 10 years. At MARR=10% per
2. Machine A has a price of $60,000, annual operating cost of $24,000, and life of 5 years. Machine B has a price of $120,000, annual operating cost of $12,000, and life of 10 years. At MARR=10% per
Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter12: Pricing Masonry, Carpentry, And Finishes Work
Section: Chapter Questions
Problem 7RQ
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![2. Machine A has a price of $60,000, annual operating cost of $24,000, and life of 5 years. Machine
B has a price of $120,000, annual operating cost of $12,000, and life of 10 years. At MARR=10% per
year, use EAC and PW to choose the better machine.
(a) Using EAC, which machine would you choose?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2e98d30-4d2f-46db-a754-8788e4818ab6%2Ffce6bd60-8340-4ef3-9529-fbe0fcf1f256%2F5w5837b_processed.png&w=3840&q=75)
Transcribed Image Text:2. Machine A has a price of $60,000, annual operating cost of $24,000, and life of 5 years. Machine
B has a price of $120,000, annual operating cost of $12,000, and life of 10 years. At MARR=10% per
year, use EAC and PW to choose the better machine.
(a) Using EAC, which machine would you choose?
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