ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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" Austin General Hospital is evaluating new office equipment offered by three
companies. The equipment have the following characteristics:
Company A
Initial cost
$15,000
Annual operating cost
1,600
Company B
$25,000
400
Annual benefit(revenue)
8,000
13,000
Salvage value
3,000
6,000
Useful life (years)
4
Company C
$20,000
900
11,000
4,500
Determine the present worth (net present value) of the equipment from each of the
companies, and decide which one should be selected. MARR = 15%.
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Transcribed Image Text:" Austin General Hospital is evaluating new office equipment offered by three companies. The equipment have the following characteristics: Company A Initial cost $15,000 Annual operating cost 1,600 Company B $25,000 400 Annual benefit(revenue) 8,000 13,000 Salvage value 3,000 6,000 Useful life (years) 4 Company C $20,000 900 11,000 4,500 Determine the present worth (net present value) of the equipment from each of the companies, and decide which one should be selected. MARR = 15%.
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