3. 9.8 As project engineer, you received the AW analysis below from the finance department. It is...
Question:
3. 9.8 As project engineer, you received the AW analysis below from the finance department. It is for a new piece of equipment you ordered some months ago. You were told the interest rate used was 10% per year, but no first cost or projected salvage value were provided and you want to know them. Determine the values of P and S using the AW values for year 3. Note: The AW values are equivalent values through the given year, not costs for the single year. Table Summary: A table divided into 4 columns shows the AW analysis for an equipment for 5 years. The column headers are marked as: Years retained; AW of first cost in dollars; AW of operating cost in dollars per year; and AW of salvage value in dollars. YearsRetained AW of FirstCost, $ AW ofOperating Cost,$ per Year AW ofSalvageValue, $
AW of FirstCost, $ AW ofOperating Cost,$ per Year AW ofSalvageValue, $ 1 −51,700 −15,000 35,000 2 −27,091 −17,000 13,810 3 −18,899 −19,000 6,648 4 −14,827 −21,000 4,309 5 −12,398 −23,000 2,457
Step by Step Answer:
Basics Of Engineering Economy
ISBN: 9781259683312
3rd Edition
Authors: Leland T. Blank, Anthony Tarquin