ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Ford Motor Company was able to reduce by 78% the
cost required for installing data acquisition
instrumentation on test
vehicles by using MTS - developed spinning wheel
force transducers. The cost this year (i.e., end of
year 1) is expected to
be $3900
If the costs are expected to increase by $250 each
year for the next 4 years, what is the equivalent
annual worth of the costs (years 1 -
5) at an interest rate of 7% per year?
The equivalent annual worth is $
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Transcribed Image Text:Ford Motor Company was able to reduce by 78% the cost required for installing data acquisition instrumentation on test vehicles by using MTS - developed spinning wheel force transducers. The cost this year (i.e., end of year 1) is expected to be $3900 If the costs are expected to increase by $250 each year for the next 4 years, what is the equivalent annual worth of the costs (years 1 - 5) at an interest rate of 7% per year? The equivalent annual worth is $
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