Question: use MARR = 8% 2. Two engineering designs are directed at improving quality of an existing manufacturing process. Each has no effect on income. Select

use MARR = 8%

use MARR = 8% 2. Two engineering designs are directed at improving

2. Two engineering designs are directed at improving quality of an existing manufacturing process. Each has no effect on income. Select the recommended method using the annual cost method. X Y First cost $300000 500000 Salvage value 20000 25000 Economic life. 7Yrs 7 Operating cost 25000/yr 10000 Maintenance cost 5000 first increases by 5000/yr 5000 Value of quality Improvement 10000/yr 25000 The value improved is a cash flow in opposite direction of cost

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