Question
A manufacturing firm is looking to invest in new equipment. Options A and B have a known initial cost and a known savings each year
A manufacturing firm is looking to invest in new equipment. Options A and B have a known initial cost and a known savings each year of the analysis period as shown in the table below. Option C has a known initial cost, but an unknown uniform annual savings. Using an MARR of 7%, determine the required uniform annual savings for Option 3, if Option 3 is to be the best option. Express your answer in $ to the nearest $10.
| Option | A | B | C |
| 0 | -10000 | -15000 | -20000 |
| 1 | 3200 | 4000 | ? |
| 2 | 3200 | 4000 | ? |
| 3 | 3200 | 4000 | ? |
| 4 | 3200 | 4000 | ? |
| 5 | 3200 | 4000 | ? |
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Social Responsibility Audit A Management Tool For Survival
Authors: John W Humble
1st Edition
0900853522, 978-0900853524
