3. McClain, Edwards, Shiver, and Smith (MESS) LLC is considering the purchase of new automated cleaning...

 

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3. McClain, Edwards, Shiver, and Smith (MESS) LLC is considering the purchase of new automated cleaning equipment. The industrial engineer for the company, David "the Dirtman" R., has been asked to calculate the present worth of the two best alternatives based on the following data. First cost Annual savings Annual operating costs Scheduled maintenance Annual insurance" Salvage value Useful life Mess Away Quick Clean 65,000 78,000 20,000 24,000 4,000 2,750 $1,500 at the end of third year 2,000 10% of first cost $3,000 at the end of the third year 2,200 12.5% of first cost 5 years 5 years David is so busy cleaning his office that he has asked you to help with the work. Determine which equipment should be purchased, given an interest rate of 8% 3. McClain, Edwards, Shiver, and Smith (MESS) LLC is considering the purchase of new automated cleaning equipment. The industrial engineer for the company, David "the Dirtman" R., has been asked to calculate the present worth of the two best alternatives based on the following data. First cost Annual savings Annual operating costs Scheduled maintenance Annual insurance" Salvage value Useful life Mess Away Quick Clean 65,000 78,000 20,000 24,000 4,000 2,750 $1,500 at the end of third year 2,000 10% of first cost $3,000 at the end of the third year 2,200 12.5% of first cost 5 years 5 years David is so busy cleaning his office that he has asked you to help with the work. Determine which equipment should be purchased, given an interest rate of 8%

Answer rating: 100% (QA)

Answer To determine which equipment should be purchased we will calculate the present worth PW of ea... View the full answer