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A mechanical engineer analyzes two types of pressure sensors (the X-type sensor and the Y-type sensor) for a low pressure steam line. Which one should
A mechanical engineer analyzes two types of pressure sensors (the X-type sensor and the Y-type sensor) for a low pressure steam line. Which one should be selected, with an interest rate of 12% per year? The costs are shown below.
TYPE X | TYPE Y | |
INITIAL COST | $25,260 | $19,000 |
ANNUAL MAINTENANCE COST | $11,000 | $9,000 |
RESCUE VALUE | $5,000 | $6,000 |
LIFE IN YEARS | 4 | 7 |
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