using all three methods compare between machines A ,B ,and C and draw each cash flow diagram 1) presnt worth analysis 2) annual worth analysis 3) future worth analysis Machine Alnitial cost = 10000$ Operating cost/year = 2000$Life time= 2 years Salvage = 1500$Machine B Initial cost = 15000$ Operating cost /year= 1000$+ yearly increment Yearly increment= 10% of operating cost Life time= 3 yearsSalvage= 2000$Machine C Initial cost= 25000$ Operating cost = 1000$ -yearly decrement Yearly decrement = 100$Life time = 4 years %3D Salvage = 3000$

using all three methods compare between machines A ,B ,and C and draw each cash flow diagram 1) presnt worth analysis 2) annual worth analysis 3) future worth analysis Machine Alnitial cost = 10000$ Operating cost/year = 2000$Life time= 2 years Salvage = 1500$Machine B Initial cost = 15000$ Operating cost /year= 1000$+ yearly increment Yearly increment= 10% of operating cost Life time= 3 yearsSalvage= 2000$Machine C Initial cost= 25000$ Operating cost = 1000$ -yearly decrement Yearly decrement = 100$Life time = 4 years %3D Salvage = 3000$

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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