Question: 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

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

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

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PW of Cost of 30 years of Westinghome 45000 2700 AP 10 30 42000 PF 10 10 42000 PF ... View full answer

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