For Machines X and Y shown, what is the difference between the EUAW for the HICP and the LICP?

 

	Machine X	Machine Y
Initial cost	$547,000	$985,000
Life	4	6
Inflation (for costs and benefit increase)	4.5%	p. y.
MARR	12%	p. y. c. y.
Project life	14	years
First year estimated costs	$191,450	$384,150
First year estimated benefits	$393,840	$640,250
Salvage value of machine today	$143,500	$172,400
Market value of machine today with 2 years of use	$246,150	$443,250

Answer rating: 100% (QA)

EUAW for HICP The EUAW for HICP is the equivalent uniform annual worth of the machine taking into ac... View the full answer