Question 6 (2 points): Scientific Instruments, Inc. uses a MARR of 8% per year. The company is evaluating a new process to reduce water effluents from its manufacturing processes. The estimate associated with the process follows. In evaluating the process based on a rate of return analysis, the correct equation to use is: New process First cost, $ -40,000 NCF, $ per year 13,000 +f Salvage value, $ 5,000 Life years 3 (A)0=-40,000+ 13,000 (P/A, 1,3) + 5000 (P/F, 1, 3) (B) 0=-40,000 - 13,000 (P/A, i, 3) - 5000 (P/F, 1, 3) (C) 0=-40,000+ 13,000(A/P, i, 3) - 5000(A/F, 1,3) (D)0=40,000+ 13,000 (P/A, i, 3) + 5000 (P/F, 1,3)

Question 6 (2 points): Scientific Instruments, Inc. uses a MARR of 8% per year. The company is evaluating a new process to reduce water effluents from its manufacturing processes. The estimate associated with the process follows. In evaluating the process based on a rate of return analysis, the correct equation to use is: New process First cost, $ -40,000 NCF, $ per year 13,000 +f Salvage value, $ 5,000 Life years 3 (A)0=-40,000+ 13,000 (P/A, 1,3) + 5000 (P/F, 1, 3) (B) 0=-40,000 - 13,000 (P/A, i, 3) - 5000 (P/F, 1, 3) (C) 0=-40,000+ 13,000(A/P, i, 3) - 5000(A/F, 1,3) (D)0=40,000+ 13,000 (P/A, i, 3) + 5000 (P/F, 1,3)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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