
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 24
The cost characteristics of a CO testing machine at Dytran Instruments are shown below. The cost of a new tester is $100,000. The equation for determining the AW of keeping the tester for 2 years is:
a) AW = 100,000( A / P,i, 8) [42,000( P / F,i, 1) + 47,000( P / F,i, 2)]( A / P,i, 8) + 40,000( A / F,i, 8)
b)AW = 100,000( A / P,i ,2) [42,000( P / F , i ,1) + 47,000( P / F,i, 2)]( A / P,i, 2) + 40,000( A / F , i ,2)
c) AW = 100,000( A / P , i, 2) 47,000 + 40,000( A / F , i ,2)
d) AW = 100,000( A / P , i ,2) 42,000 + 40,000( A / F , i ,2) + 40,000( A / F,i, 8) b)AW = 100,000( A / P,i ,2) [42,000( P / F , i ,1) + 47,000( P / F,i, 2)]( A / P,i, 2) + 40,000( A / F , i ,2) c) AW = 100,000( A / P , i, 2) 47,000 + 40,000( A / F , i ,2) d) AW = 100,000( A / P , i ,2) 42,000 + 40,000( A / F , i ,2)](https://storage.examlex.com/SM2394/11eb5c00_dc3d_6aad_bd4c_c34803bc10ad_SM2394_00.jpg)
a) AW = 100,000( A / P,i, 8) [42,000( P / F,i, 1) + 47,000( P / F,i, 2)]( A / P,i, 8) + 40,000( A / F,i, 8)
b)AW = 100,000( A / P,i ,2) [42,000( P / F , i ,1) + 47,000( P / F,i, 2)]( A / P,i, 2) + 40,000( A / F , i ,2)
c) AW = 100,000( A / P , i, 2) 47,000 + 40,000( A / F , i ,2)
d) AW = 100,000( A / P , i ,2) 42,000 + 40,000( A / F , i ,2)
 + 40,000( A / F,i, 8) b)AW = 100,000( A / P,i ,2) [42,000( P / F , i ,1) + 47,000( P / F,i, 2)]( A / P,i, 2) + 40,000( A / F , i ,2) c) AW = 100,000( A / P , i, 2) 47,000 + 40,000( A / F , i ,2) d) AW = 100,000( A / P , i ,2) 42,000 + 40,000( A / F , i ,2)](https://storage.examlex.com/SM2394/11eb5c00_dc3d_6aad_bd4c_c34803bc10ad_SM2394_00.jpg)
Explanation
A machine can be replaced with another m...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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