An engineer has received two bids for an elevator to be installed in a new building. The bids, plus his evaluation of the elevators, are shown in Table P5-69. The engineer will make a present worth analysis using a 10% interest rate. Prepare the analysis and determine which bid should be accepted.
Table P5-69

Transcribed Image Text:

Engineer's Estimates Bids: Installed Cost Service Life (years) 10 15 Salvage Value at End of Service Life Annual Operating Cost, Including Repairs $2700fyr 2850/yr Alternatives Westinghome tis $45,000 54,000 $3000 4500