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A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives
A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives are a used piece of equipment (E1) and a new automated model (E2). The economic estimates for each are shown in the accompanying table. The MARR is 12% per year. Find the following. Annual worth of Alternative E1 (\$) Annual worth of Alternative E2 (\$) Minimum Study period with Repeatability Assumption applied (year) Present worth of Alternative E1 over the minimum study period with repeatability assumption applied (\$) Present worth of Alternative E2 over the minimum study period with repeatability assumption applied (\$) Capital Recovery cost of alternative E2 (\$) Imputed market value of alternative E2 when it is terminated at the useful life of alternative E1 (\$) A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives are a used piece of equipment (E1) and a new automated model (E2). The economic estimates for each are shown in the accompanying table. The MARR is 12% per year. Find the following. Annual worth of Alternative E1 (\$) Annual worth of Alternative E2 (\$) Minimum Study period with Repeatability Assumption applied (year) Present worth of Alternative E1 over the minimum study period with repeatability assumption applied (\$) Present worth of Alternative E2 over the minimum study period with repeatability assumption applied (\$) Capital Recovery cost of alternative E2 (\$) Imputed market value of alternative E2 when it is terminated at the useful life of alternative E1 (\$)
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