Deep Seas Submarine must implement a new engine in its submarines to meet the needs of clients
Fantastic news! We've Found the answer you've been seeking!
Question:
Deep Seas Submarine must implement a new engine in its submarines to meet the needs of clients who desire quieter operation. Two designs, both technologically feasible, have been created, and Deep Seas wishes to know which one to pursue. Design 1 would require an up-front manufacturing cost of $17,000,000 and will cost $4,700,000 per year for 3 years to swap out the engines in all its current submarines. Design 2 will cost $86,000,000 up front, but due to a higher degree of compatibility will only require $6,700,000 per year to implement. MARR is 10 percent/year. Based on an internal rate of return analysis, determine which design should be chosen.
Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
Posted Date: