ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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An American-Australian joint venture has been contracted to provide the train cars for a 25-mile subway system using new tunnel-boring and track-design technologies. Austin, Texas was selected as the proof-of-concept site based on its variety in landscape features (hilly terrain, lake and green space areas, and relatively low precipitation) and its public environmental mindedness. Selection of either a Swiss or Japanese contractor to provide the gears and power components for the electric transfer motor assemblies resulted in two cost alternatives. as shown gives the incremental cash flow estimates (in $1000) over the expected 10-year life of the motors. Determine the number of i* values and estimate them graphically.
Transcribed Image Text:TABLE 6.12 Incremental and Cumulative Cash Flow Series,
Example 6.9
Cash Flow, $1000
Cash Flow, $1000
Year
Incremental
Cumulative
Year
Incremental
Cumulative
-500
-500
6
+800
+200
1
- 2000
-2500
7
+400
+600
- 2000
-4500
+300
+900
3
+2500
-2000
9
+200
+1100
+1500
-500
10
+100
+1200
-100
-600
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