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9.2 A manufacturing equipment has a salvage value today (EOY 0) of $15000 which will drop by $3000 each year. The maintenance cost for next
9.2 A manufacturing equipment has a salvage value today (EOY 0) of $15000 which will drop by $3000 each year. The maintenance cost for next year (EOY 1) is $1250 and will increase by $2000 each year. (a) Determine the total marginal cost to extend service for each of the the next 4 years if the MARR is 10%. [20 points) EOY Market value Loss in market value Loss in interest O&M cost Marginal cost 0 1 2 3 4 (b) Which analysis technique would you use? [4 points) (c) If a challenger's minimum EUAC was $10,000 when, if at all, would you replace the defender? [6 points]
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