A manufacturer with a MARR of 20% is considering the installation of one of two packaging...

Transcribed Image Text:

A manufacturer with a MARR of 20% is considering the installation of one of two packaging machines. The economic parameters of each machine are as follows: Packaging machine: Initial cost (5) Uniform annual benefit (5) Uniform annual O&M cost (5) Service life (years) 4 Salvage value end of life 2,000 (5) X 20,000 120,000 O $133,136 O $144,144 70,000 Y 40,000 180,000 50,000 2 4,000 over the 4 year analysis period, the present worth of machine X is: $143,144 Ⓒ$195,100 $103,138 A manufacturer with a MARR of 20% is considering the installation of one of two packaging machines. The economic parameters of each machine are as follows: Packaging machine: Initial cost (5) Uniform annual benefit (5) Uniform annual O&M cost (5) Service life (years) 4 Salvage value end of life 2,000 (5) X 20,000 120,000 O $133,136 O $144,144 70,000 Y 40,000 180,000 50,000 2 4,000 over the 4 year analysis period, the present worth of machine X is: $143,144 Ⓒ$195,100 $103,138

Answer rating: 100% (QA)

Answer A 143144 Explanation To calculate the present worth of the machine we must first calc... View the full answer