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A company is investing in a new system that will provide annual savings of $300000. The initial cost of the system is $1,250,000 with additional
A company is investing in a new system that will provide annual savings of $300000. The initial cost of the system is $1,250,000 with additional maintenance costs of $175,000 per year. The useful life of the system is 7 years and the MARR is 11% per year. Determine how sensitive the decision to invest in this system to the estimates of annual revenue and maintenance cost?
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Initial cost 1250000 Annual maintenance cost 175000 Annual savings 30 12345 370350 Life 7 years MARR ...
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
132554909, 978-0132554909
