The capitalized cost of machine Y is closest to: (a) $17,726 (b) $86,590 (c) $177,260 (d) $207,720

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The capitalized cost of machine Y is closest to:

(a) $17,726

(b) $86,590

(d) $207,720

Problem is based on the following cash flows for alternatives X and Y at an interest rate of 10% per year.

Machine Initial cost, $ AOC, $/year Annual revenue, $/year Salvage value, $ Life, years -220,000 -146,000 -15,000 -10,00

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 24, 2018 10:32 AM

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The capitalized cost of machine Y is closest to: (a) $17,726 (b) $86,590 (c) $177,260 (d) $207,720

Question:

Machine Initial cost, $ AOC, $/year Annual revenue, $/year Salvage value, $ Life, years -220,000 -146,000 -15,000 -10,000 80,000 10,000 3 75,000 25,000

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First find AW over n 6 years and th...View the full answer

Engineering Economy

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