Structural Analysis
Structural Analysis
6th Edition
ISBN: 9781337630931
Author: KASSIMALI, Aslam.
Publisher: Cengage,
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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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Transcribed Image Text: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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