ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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As an engineer, you are responsible to find the best alternative that is economically best. The cash flows shown in the table and
the MARR is 11 % per year. Then please answer the following questions.
Cash Flow
Project 01 Project 02 Project 03
First Cost, $
-90000
260000
270000
Annual Cost, $ Per Year
-40000
-20000
-12000
Overhaul Every 10 Years, $
-70000
Salvage Value, $
5000
27000
77000
Life, Years
10
a) Find the Aw for Project 01.
b) calculate the AW for Project 02
c) Calculate Aw for Project 03.
What is your decision? Explain it briefly in the text box and upload your handwritten solution.
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Transcribed Image Text:As an engineer, you are responsible to find the best alternative that is economically best. The cash flows shown in the table and the MARR is 11 % per year. Then please answer the following questions. Cash Flow Project 01 Project 02 Project 03 First Cost, $ -90000 260000 270000 Annual Cost, $ Per Year -40000 -20000 -12000 Overhaul Every 10 Years, $ -70000 Salvage Value, $ 5000 27000 77000 Life, Years 10 a) Find the Aw for Project 01. b) calculate the AW for Project 02 c) Calculate Aw for Project 03. What is your decision? Explain it briefly in the text box and upload your handwritten solution.
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