Answer Happy

جامعة جدة ENIN 255: Engineering Economy Spring 2022 Practice Problems Chapter 5.6 1. It is required to select one of the two machines, which machine should be selected based on a present worth comparison at an interest rate of 12% per year, if the costs are shown below? First cost, SR Maintenance cost.SR/year Salvage value, SR Economic life (years) Machine A 7.650 -1.200 0 6 Machine B -17.000 -750 4000 12 2. A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates below First cost, SR Annual Operation Cost. SR/year Salvage value. SR Life (years) Vendor A -15,000 -3,500 1000 6 Vendor B -18.00 -3.100 200 9 Determine which vendor should be selected on the basis of a present worth comparison, if the MARR is 15% per year. 3. Compare the alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. First cost, SR Annual Operation Cost. SR/year Salvage value, SR Life (years) Machine A - 100.000 -50,000 80X10 5 Machine B 800.000 -12.000 1,000,000