MARR = 12%. This asset is similar across some other asset replacement questions: An asset has a first cost of $90,000 and is expected to lose $5,000 in market value each year, until the asset has a 0$ market value. O&M costs for the first and second year are expected to be zero, but in the third year the repair costs are expected to be $10,000 and increase by 20% per year thereafter. There is a required maintenance in the 5th year of $20,000. EAC6 is within $250 of which of the following? 23,460 23,960

MARR = 12%. This asset is similar across some other asset replacement questions: An asset has a first cost of $90,000 and is expected to lose $5,000 in market value each year, until the asset has a 0$ market value. O&M costs for the first and second year are expected to be zero, but in the third year the repair costs are expected to be $10,000 and increase by 20% per year thereafter. There is a required maintenance in the 5th year of $20,000. EAC6 is within $250 of which of the following? 23,460 23,960

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A CNC machine which was purchased five years ago for $170,000 is being considered for replacement. Its current first cost is estimated to be $130,000. Its AOC is $75,000 in year one and increasing by $4,000 each year. Its salvage value is $15,000 regardless of when the asset is retired. Using a MARR of 10% per year, determine the ESL and the respective AW. Its maximum useful life is three years.
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The capitalized cost of a new printing equipment was found to be P426,000.00.The rate of interest was 12%, with a salvage value of P30,000.00 t the end of a service life of 8 years. Assuming that the cost of perpetual replacement remains constant, determine the original cost of the equipment.
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An investment of $1,001,000 today yields positive cash flows of $200,000 each year for years 1 through 10. MARR is 15%. Determine the DPBP of this investment. years Round your answer up to the nearest whole number of years. Tolerance is ±1.
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