*USE THE STATED METHOD IN THE PROBLEM *USE LOGICAL AND CLEAN SOLUTION

1. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative A B Capital investment $272,000 $346,000 Annual expenses 28,800 19,300 Useful life (years) 6 9 Salvage value 25,000 40,000 Show that the same selection is made for the following methods: a. RORAI method b. AWC method c. PW method 1. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative A B Capital investment $272,000 $346,000 Annual expenses 28,800 19,300 Useful life (years) 6 9 Salvage value 25,000 40,000 Show that the same selection is made for the following methods: a. RORAI method b. AWC method c. PW method