ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question 2
Your rubber duck company is considering adding a new bath toy
product line, and they have two material alternatives: rubber and
plastic. The expected costs and revenues for each alternative are
given below, as well as the useful lives of the manufacturing
equipment. Use a study period of 6 years, the cotermination
assumptions, and a MARR of 9%.
Plastic:
Initial investment: $80,000
Annual cost: $29,000
Annual revenue: $88,000
Salvage value: $16,000
Useful life: 6 years
What is the present worth of the plastic alternative?
Typed numeric answer will be automatically saved.
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Transcribed Image Text:Question 2 Your rubber duck company is considering adding a new bath toy product line, and they have two material alternatives: rubber and plastic. The expected costs and revenues for each alternative are given below, as well as the useful lives of the manufacturing equipment. Use a study period of 6 years, the cotermination assumptions, and a MARR of 9%. Plastic: Initial investment: $80,000 Annual cost: $29,000 Annual revenue: $88,000 Salvage value: $16,000 Useful life: 6 years What is the present worth of the plastic alternative? Typed numeric answer will be automatically saved.
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