Required information The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ R -250,000 -40,000 3 20,000 Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $- The better alternative is (Click to select) S -370,500 -50,000 5 20,000 and the annual worth of machine S is $-

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Required information
The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune-
ups.
Machine
First cost, $
Annual operating cost, $ per year
Life, years
Salvage value, $
R
-250,000
-40,000
3
20,000
Use the AW method at 9% per year to select the better alternative.
The annual worth of machine R is $-
The better alternative is (Click to select)
S
-370,500
-50,000
5
20,000
and the annual worth of machine S is $-
Transcribed Image Text:Required information The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ R -250,000 -40,000 3 20,000 Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $- The better alternative is (Click to select) S -370,500 -50,000 5 20,000 and the annual worth of machine S is $-
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