In the design of a new facility, the mutually exclusive alternatives in the following table are being
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Question:
In the design of a new facility, the mutually exclusive alternatives in the following table are being considered. Assume that the interest rate (MARR) is 15% per year and the analysis period is 10 years.
design 1 | design 2 | design 3 | |
Capital investment | $28,000 | $16,000 | $23,500 |
Annual income minus expenses | $5,500 | $3,300 | $4,800 |
Market value | $1,500 | 0 | $500 |
useful life (years) | 10 | 10 | 10 |
Use the following methods to choose the best of these three design alternatives.
Annual Worth method
Future Worth method
Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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