7. 6.25 Two options are available for setting up a wireless meter scanner and controller. A simple...

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7. 6.25 Two options are available for setting up a wireless meter scanner and controller. A simple setup is good for 2 years and has an initial cost of $12,000, no salvage value, and an AOC of $27,000 per year. A more permanent system has a higher first cost of $73,000, but it has an estimated life of 6 years and a salvage value of $15,000. It costs only

$14,000 per year to operate and maintain. If the two options are compared using an incremental rate of return, what are the incremental cash flows in

(a) year 0,

(b) year 2, and

(c) year 6?

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Basics Of Engineering Economy

ISBN: 9781259683312

3rd Edition

Authors: Leland T. Blank, Anthony Tarquin

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