A factory is comparing two final offers (A & B) to choose from. The initial price of the offer A is $ 3,200,000 with an expected annual maintenance of $ 130,000 and a salvage value of $ 300,000 after the 4 years life time of the project. On the other hand, the initial price of the offer B is $ 8,000,000 with an expected annual maintenance of $105,000 and a salvage value of $ 450,000 afher the 6 years life time of the project. The MARR of the factory is 18% per year. Calculate the present worth the factory has to pay for offer A using the LCM technique. $6,049.252 $6,049 252 S-11,238,298 OS-11,238.298

A factory is comparing two final offers (A & B) to choose from. The initial price of the offer A is $ 3,200,000 with an expected annual maintenance of $ 130,000 and a salvage value of $ 300,000 after the 4 years life time of the project. On the other hand, the initial price of the offer B is $ 8,000,000 with an expected annual maintenance of $105,000 and a salvage value of $ 450,000 afher the 6 years life time of the project. The MARR of the factory is 18% per year. Calculate the present worth the factory has to pay for offer A using the LCM technique. $6,049.252 $6,049 252 S-11,238,298 OS-11,238.298

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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