Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 40

Scientific Instruments, Inc. uses a MARR of 8% per year. The company is evaluating a new process to reduce water effluents from its manufacturing processes. The estimate associated with the process follows. In evaluating the process on the basis of a rate of return analysis, the correct equation to use is:
a) 0 = 40,000 + 13,000( P / A , i ,3) + 5000(P/F,i,3)
b) 0 = 40,000( A / P , i ,3) + 13,000 + 5000( A / F , i ,3)
c) 0 = 40,000( F/p , i ,3) + 13,000( F / A , i ,3) + 5000
d) Any of the above