ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Give typing answer with explanation and conclusion
5-44. An elevator company has redesigned its product to be 50% more energy efficient than
hydraulic designs. Two designs are being considered for implementation in a new building.
a) Given an interest rate of 20% which bid should be accepted?
Alternatives
A
B
Installed cost
Annual cost
Salvage value
Life, in years
$45,000
2700
3000
10
$54,000
2850
4500
15
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Transcribed Image Text:5-44. An elevator company has redesigned its product to be 50% more energy efficient than hydraulic designs. Two designs are being considered for implementation in a new building. a) Given an interest rate of 20% which bid should be accepted? Alternatives A B Installed cost Annual cost Salvage value Life, in years $45,000 2700 3000 10 $54,000 2850 4500 15
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