Question: a materials engineer is considering two compounds for the outer shells of optical fibers. the germanium tetrachloride process (G) has the following estimates: first cost
a materials engineer is considering two compounds for the outer shells of optical fibers. the germanium tetrachloride process (G) has the following estimates: first cost of $85,000...
A materials engineer is considering two compounds for the outer shells of optical fibers. The germanium tetrachloride process (G) has the following estimates: first cost of $85,000; annual M&O costs of $32,000; a useful life of 8 years; and a $20,000 salvage value. The phosphorus oxychloride process (P) will have a first cost of $97,000, annual M&O costs of $27,000, a useful life of 3 years, and a $48,000 salvage value. The MARR is 12% per year. a. Which process should be selected on the basis of an annual worth comparison? Use a 3-year study period. Assume the G process will have a market value of $40,000 after 3 years. b. Is the selection different if the full 8-year life is allowed for procss G? Why? A materials engineer is considering two compounds for the outer shells of optical fibers. The germanium tetrachloride process (G) has the following estimates: first cost of $85,000; annual M&O costs of $32,000; a useful life of 8 years; and a $20,000 salvage value. The phosphorus oxychloride process (P) will have a first cost of $97,000, annual M&O costs of $27,000, a useful life of 3 years, and a $48,000 salvage value. The MARR is 12% per year. a. Which process should be selected on the basis of an annual worth comparison? Use a 3-year study period. Assume the G process will have a market value of $40,000 after 3 years. b. Is the selection different if the full 8-year life is allowed for procss G? Why
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