Question: Two machines listed below for producing an engine part. Assuming repeatability, which one has the greatest annual worth AW (= least equivalent uniform annual cost
Two machines listed below for producing an engine part. Assuming repeatability, which one has
the greatest annual worth AW (= least equivalent uniform annual cost EUAC)? Salvage value is received
at the end of a machines useful life. MARR = 8%.
Machine 1 Machine 2
Initial Cost $25,000 $20,000
Annual O&M Cost $6,000 $8,000
Salvage Value $5,000 $3,000
Useful Life 7 years 5 years
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