Certain parts for NASA€™s reusable space exploration vehicle can either be anodized (A) or powder coated (P). Some of the costs for each process are shown in the table below. The incremental cash flow future worth equation associated with (P €“ A) is:

0 = ˆ’53,000(Fˆ•P,i*P €“ A,5) + 21,000(Fˆ•A,i*P €“ A,5) + 8000

Determine the following:

(a) First cost for P;

(b) M&O for A;

(c) Resale value of P.

Transcribed Image Text:

Process First cost, $ M&O, $/year Resale value, $ Life, years Powder Coated, P Anodize, A -30,000 -11,000 4000 5