A В Capital investment $50,000 Operating costs $20,000 $5,000 at end of year 1 and increasing by $500 increasing by $1,000 per year thereafter per year thereafter $5,000 every 5 years None 20 years...


Compare alternatives A and B with the equivalent worth method of your choice if the MARR is 15% per year. Which one would you recommend? State all assumptions. Suppose the study period has been coterminated at 10 years. Use the imputed market value technique and determine which alternative is the most economical.


A<br>В<br>Capital investment $50,000<br>Operating costs<br>$20,000<br>$5,000 at end of<br>year 1 and<br>increasing by $500 increasing by $1,000<br>per year thereafter per year thereafter<br>$5,000 every 5 years None<br>20 years<br>S10,000 if just<br>$10,000 at end of<br>year 1 and<br>Overhaul costs<br>Life<br>10 years<br>negligible<br>Salvage value<br>overhauled<br>

Extracted text: A В Capital investment $50,000 Operating costs $20,000 $5,000 at end of year 1 and increasing by $500 increasing by $1,000 per year thereafter per year thereafter $5,000 every 5 years None 20 years S10,000 if just $10,000 at end of year 1 and Overhaul costs Life 10 years negligible Salvage value overhauled

Jun 01, 2022
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