5- Year SV O&M 15,000 1000 12,000 1500 9,000 3 2000 The table above lists salve value (SV) and operating and maintenance (O&M) cost of an asset through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements is correct (choose the closest answer)? a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $6,500 b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $7,048 c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $7,048 d) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $6,000

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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5-
Year
SV
O&M
15,000 1000
12,000 1500
9,000
The table above lists salve value (SV) and operating and maintenance (O&M) cost of an asset
through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements
3
2000
is correct (choose the closest answer)?
a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is
$6,500
b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is
$7,048
c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is
$7,048
d) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is
$6,000
Transcribed Image Text:5- Year SV O&M 15,000 1000 12,000 1500 9,000 The table above lists salve value (SV) and operating and maintenance (O&M) cost of an asset through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements 3 2000 is correct (choose the closest answer)? a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $6,500 b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $7,048 c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $7,048 d) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $6,000
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