For the cash flows shown, use an annual worth comparison and an interest rate of 10% per

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For the cash flows shown, use an annual worth comparison and an interest rate of 10% per year.

(a) Determine the alternative that is economically best.
(b) Determine the first cost required for each of the two alternatives not selected in (a) so that all alternatives are equally acceptable. Use a spreadsheet to answer thisquestion.

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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Question Posted: Dec 17, 2012 05:43 AM

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For the cash flows shown, use an annual worth comparison and an interest rate of 10% per

Question:

First cost, $ Annual cost,40,000 -90,000-400.000-650.000 S per year Overhaul every 10 years, S Salvage value, $ -20,000-13,000 -80,000 200,000 7,000 25,000 10 Life, years

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a AW X 90000AP103 40000 7000AF103 90000040211 40000 7000030211 74075 AW Y 400000AP1010 20000 25000AF...View the full answer

Engineering economy

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