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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.

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.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
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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