A company is planning to undertake an 8-year project. A machine is required for the project....

 

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A company is planning to undertake an 8-year project. A machine is required for the project. The initial cost of the machine in Year O is $75K. The machine has a life c 6 years. A 2-year old machine today is valued at $20K. A 6-year old machine today is valued at $60K. First-year costs are $10K and increase by 4% annually. First- year benefits are $50K and increase by 4% annually. If the MARR is 10% p.y.c.m., what is the EUAW (AW)? [Note: k = 1000]. A company is planning to undertake an 8-year project. A machine is required for the project. The initial cost of the machine in Year O is $75K. The machine has a life c 6 years. A 2-year old machine today is valued at $20K. A 6-year old machine today is valued at $60K. First-year costs are $10K and increase by 4% annually. First- year benefits are $50K and increase by 4% annually. If the MARR is 10% p.y.c.m., what is the EUAW (AW)? [Note: k = 1000].

Answer rating: 100% (QA)

To calculate the Equivalent Uniform Annual Worth EUAW or Annual Worth AW of the project we will calc... View the full answer