Chap 6 examples

# Chap 6 examples - (one must be chosen MARR is 5 Assume...

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Example 1 Which mutually exclusive design (if any) should be chosen from the designs listed? A 10-year study period is to be used, and the MARR is 10% per year. All market values are negligible. Use the PW method. Confirm with FW and AW method. Chap 6 examples Design A Design B Design C Capital investment \$170,000 \$330,000 \$300,000 Annual receipts 114,000 147,000 130,000 Annual expenses 70,000 79,000 64,000

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Example 2 Consider the following EOY cash flows for 2 mutually exclusive alternatives (one must be chosen): MARR is 5%. Which alternative if repeatability assumption applies? Chap 6 examples Machine X Machine Y Capital investment \$6,000 \$14,000 Annual expenses 2,500 2,400 Useful life 12 years 18 years Market value at end 0 2,800
Example 3 Consider the following EOY cash flows for 2 mutually exclusive alternatives

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Unformatted text preview: (one must be chosen): MARR is 5%. Assume machines from previous example will be used indefinitely. Use the CW method to evaluate the projects. Chap 6 examples Machine X Machine Y Capital investment \$6,000 \$14,000 Annual expenses 2,500 2,400 Useful life 12 years 18 years Market value at end 2,800 Example 4 Consider the following EOY cash flows for 2 mutually exclusive alternatives (one must be chosen): MARR is 5%. Use a study period of 18 years. Chap 6 examples Machine X Machine Y Capital investment \$6,000 \$14,000 Annual expenses 2,500 2,400 Useful life 12 years 18 years Market value at end 2,800 Example 5 Chap 6 examples...
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Chap 6 examples - (one must be chosen MARR is 5 Assume...

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