A national company plan to purchase new machine. Two manufactures offered the estimates below. Manufacture A -15,000 3,500 1000 First Cost, S Annual M&O cost $ per year Salvage Value S Life, years Manufacture B 18,000 3,100 2000 Determine which manufacture should be selected on the basis of a Present Worth comparison if the MARR is 15% per y O Manufacture B should be selected on the basis of a present worth comparison with PW=-$40,395 O Manufacture A should be selected on the basis of a present worth comparison with PW= $44,222 O Manufacture B should be selected on the basis of a present worth comparison with PW=-$41.383 O None of the given answers O Manufacture A should be selected on the basis of a present worth comparison with PW--$45,036

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

00 ASAP PLZZ

Question 1
A national company plan to purchase new machine. Two manufactures offered the estimates below:
Manufacture A
Manufacture B
-18,000
-15,000
-3,500
3,100
1000
First Cost, S
Annual M&O cost $ per year
Salvage Value $
Life, years
2000
Determine which manufacture should be selected on the basis of a Present Worth comparison if the MARR is 15% per year.
O Manufacture B should be selected on the basis of a present worth comparison with PW=-$40,395
O Manufacture A should be selected on the basis of a present worth comparison with PW= $44,222
Manufacture B should be selected on the basis of a present worth comparison with PW=-$41.383
None of the given answers
O Manufacture A should be selected on the basis of a present worth comparison with PW=-$45,036
Transcribed Image Text:Question 1 A national company plan to purchase new machine. Two manufactures offered the estimates below: Manufacture A Manufacture B -18,000 -15,000 -3,500 3,100 1000 First Cost, S Annual M&O cost $ per year Salvage Value $ Life, years 2000 Determine which manufacture should be selected on the basis of a Present Worth comparison if the MARR is 15% per year. O Manufacture B should be selected on the basis of a present worth comparison with PW=-$40,395 O Manufacture A should be selected on the basis of a present worth comparison with PW= $44,222 Manufacture B should be selected on the basis of a present worth comparison with PW=-$41.383 None of the given answers O Manufacture A should be selected on the basis of a present worth comparison with PW=-$45,036
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Property Damage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education