Millard Manufacturing must replace one of its pumps. The net present cost of Alternative A is $8,956, Alternative B is $5,531, and Alternative C is $4,078. Alternative A is expected to last for 12 years; Alternative B has a life expectancy of 7 years; and Alternative C is expected to last for 5 years. If Millard's MARR is 5%, which alternative (if any) should be chosen using EUAC (Equivalent Uniform Annual Cost)?

Millard Manufacturing must replace one of its pumps. The net present cost of Alternative A is $8,956, Alternative B is $5,531, and Alternative C is $4,078. Alternative A is expected to last for 12 years; Alternative B has a life expectancy of 7 years; and Alternative C is expected to last for 5 years. If Millard's MARR is 5%, which alternative (if any) should be chosen using EUAC (Equivalent Uniform Annual Cost)?

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Concept explainers

Collection Systems

The collection systems form a part of sanitary engineering, which is a sub-branch of civil engineering. It is also known as public health engineering and wastewater engineering. It is a methodology followed to remove and properly dispose of human waste, along with creating systems to provide safe and clean usable water. These measures ensure a hygienic and disease-free community. Sanitary engineering, apart from building sewer disposal units, is also involved in plumbing, fire protection, hydraulics, life safety, environmental protection, information technology, microbiology, pathology, and so on.

Question

5) Millard Manufacturing must replace one of its pumps. The net present cost of Alternative A is $8,956,
Alternative B is $5,531, and Alternative C is $4,078. Alternative A is expected to last for 12 years;
Alternative B has a life expectancy of 7 years; and Alternative C is expected to last for 5 years. If Millard's
MARR is 5%, which alternative (if any) should be chosen using EUAC (Equivalent Uniform Annual Cost)?

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