Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It has a useful life of four years and no salvage value at the end of that time. Machine Y costs $22.000 initially and has no maintenance costs during the first year. Maintenance is $200 at the end of the second year and increases by $200 per year thereafter. Machine Y has a useful life of eight years and an anticipated salvage value of $5,000 at the end of its useful life If the MARR is 6%, what is the approximate Net Present Worth (NPW) of machine X? OA-$28.563 OB-$25.852 OC-$32.085 00-$22.318

Given:- (For machine x) Initial cost=$12,000Annual maintenance=$700Life=4 yearsSalvage value=0 (For…

Answered: Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It has a useful life of four years and no salvage value at the end of that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN: 9780190931919

Author: NEWNAN

Publisher: Oxford University Press

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Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It has a useful life of four years and no salvage value at the
end of that time. Machine Y costs $22,000 initially and has no maintenance costs during the first year Maintenance is $200 at the end of the
second year and increases by $200 per year thereafter Machine Y has a useful life of eight years and an anticipated salvage value of $5,000 at
the end of its useful life If the MARR is 6%, what is the approximate Net Present Worth (NPW) of machine X?
OA-$28,563
OB. -$25,852
OC.-$32.085
O0,-$22.318

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