Question: An engineer must decide between two ways to pump concrete to the top of a sevenstory building. Plan 1 requires the leasing of equipment for

 An engineer must decide between two ways to pump concrete to

An engineer must decide between two ways to pump concrete to the top of a sevenstory building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost $18,000 per year. In addition, an extra $20.5 per hour labor cost will be incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 60 days per year? The MARR is 10% per year. The annual worth of plan 1 lease optimistic is $ The annual worth of plan 1 most likely is $ The annual worth of plan 1 pessimistic is $ The annual worth of plan 2 rental is $ Plan 1 lease optimistic is than rental of plan 2. Plan 1 most likely is than rental of plan 2. Plan 1 lease pessimistic is an rental of plan 2

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