An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leas

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An Engineer Must Decide Between Two Ways To Pump Concrete To The Top Of A Seven Story Building Plan 1 Requires The Leas 1 (143.51 KiB) Viewed 13 times

An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost $18,000 per year. In addition, an extra $13.5 per hour labor cost will be incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 50 days per year? The MARR is 14% per year. The annual worth of plan 1 lease optimistic is $ -19,144.5 The annual worth of plan 1 most likely is $ The annual worth of plan 1 pessimistic is $ The annual worth of plan 2 rental is $ -21,000 Plan 1 lease optimistic is higher Plan 1 most likely is better Plan 1 lease pessimistic is higher than rental of plan 2. than rental of plan 2. than rental of plan 2.