ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
If
More
than
2
alternatives
you
are
Company
and
to
decide
of
is
trying
investment
A > Incremental analysis (Alternativ
Alternative: A > Incremental analysis
B
C
if
the
additional
increment
Worth while, compare.
pairs
wins
then
B vs C
A
Company
Considering
2
different
machines
at
MARR
at
12%
Both life
spans
=
10
years
M/C X
M/CY
Initial Cost
160000
285000
Annual Operating Cost
45000
45000
Benefits per year
Salvage Value
90000
105000
20000
40000
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Transcribed Image Text:If More than 2 alternatives you are Company and to decide of is trying investment A > Incremental analysis (Alternativ Alternative: A > Incremental analysis B C if the additional increment Worth while, compare. pairs wins then B vs C A Company Considering 2 different machines at MARR at 12% Both life spans = 10 years M/C X M/CY Initial Cost 160000 285000 Annual Operating Cost 45000 45000 Benefits per year Salvage Value 90000 105000 20000 40000
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