5.30 For the cash flows shown, use an annual worth comparison and a MARR of 10%...

Transcribed Image Text:

5.30 For the cash flows shown, use an annual worth comparison and a MARR of 10% per year to deter- mine the following: a. The alternative that is economically best. b. (Spreadsheet exercise) The first cost required for each of the two alternatives not selected in (a) so that all alternatives are equally acceptable. X Y Z First cost, $ -90,000 -400,000 -650,000 Annual cost, $ per year -40,000 -20,000 -13,000 Overhaul every 10 years, $ -80,000 Salvage value, $ 7,000 25,000 200,000 Life, years 3 10 5.30 For the cash flows shown, use an annual worth comparison and a MARR of 10% per year to deter- mine the following: a. The alternative that is economically best. b. (Spreadsheet exercise) The first cost required for each of the two alternatives not selected in (a) so that all alternatives are equally acceptable. X Y Z First cost, $ -90,000 -400,000 -650,000 Annual cost, $ per year -40,000 -20,000 -13,000 Overhaul every 10 years, $ -80,000 Salvage value, $ 7,000 25,000 200,000 Life, years 3 10