As a project engineer, you received the AW analysis below from the finance department. It is for a new piece of equipment youordered some months ago. You were told the interest rate used was 10% per year, but no first cost or projected salvage value wasprovided and you want to know them. Determine the values of P and S using the AW values for the year 3. Note: The AW values areequivalent values through the given year, not costs for the single year.Years Retained AW of First Cost, $AW of Operating Cost, $ per YearAW of Salvage Value, $1-51,700-15,00035,000234-27,091-17,00013,810-18,899-19,0006,648-14,827-21,0004,3095-12,398-23,0002,457The value of P is $ 25,149.07 and the value of S is $ 8,853.89Х

The objective of the question is to determine the first cost (P) and the salvage value (S) of a…

Answered: As a project engineer, you received the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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