Question: For Machines X and Y shown, what is the difference between the EUAW for the HICP and the LICP? Machine X Machine Y Initial cost
For Machines X and Y shown, what is the difference between the EUAW for the HICP and the LICP?
| Machine X | Machine Y | |
| Initial cost | $547,000 | $985,000 |
| Life | 4 | 6 |
| Inflation (for costs and benefit increase) | 4.5% | p. y. |
| MARR | 12% | p. y. c. y. |
| Project life | 14 | years |
| First year estimated costs | $191,450 | $384,150 |
| First year estimated benefits | $393,840 | $640,250 |
| Salvage value of machine today | $143,500 | $172,400 |
| Market value of machine today with 2 years of use | $246,150 | $443,250 |
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EUAW for HICP The EUAW for HICP is the equivalent uniform annual worth of the machine taking into ac... View full answer
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