engineering economy
A construction company has an alternative to purchase a certain bulldozer for $130000. It is estimated that there is a potential to gain $9000 in each year. Also estimated is that the bulldozer could be sold for $S1 at the end of its economic life. There is $2000 maintenance and operation costs in each year. Another alternative is to buy a machine of $130000 with annual benefit of $3000, a scrap value of $S2 annual maintenance and operation cost of $5500 and. Finding the PRESENT equivalents of benefits and costs for both alternatives, advice the company which machine to buy based on the B/C method. The annual discount rate is % 1.5 and the economic life of the machines is 15 years. 19:25 First alternative All Benefits Present or uniform value for G1 value = 1 BIE B1-B2- Present or uniform value for Sl value =B2 B2- All Costs Present or uniform value for Mi valueCL CIE C1402 Present or uniform value for MO1 value=02 02- /C or -- Second alternative All Benefits Present or uniform value for Gi Value - 31 B1 31-32 present or uniform value for si valde 82 All Costs Presentar uniform value for MI value=Cl C1+02 Osmon uniform value for MOL value = 2 B/IG OBIC Which alternative? ( Putsign for the right answer A construction company has an alternative to purchase a certain bulldozer for $130000. It is estimated that there is a potential to gain $9000 in each year. Also estimated is that the bulldozer could be sold for $S1 at the end of its economic life. There is $2000 maintenance and operation costs in each year. Another alternative is to buy a machine of $130000 with annual benefit of $3000, a scrap value of $S2 annual maintenance and operation cost of $5500 and. Finding the PRESENT equivalents of benefits and costs for both alternatives, advice the company which machine to buy based on the B/C method. The annual discount rate is % 1.5 and the economic life of the machines is 15 years. 19:25 First alternative All Benefits Present or uniform value for G1 value = 1 BIE B1-B2- Present or uniform value for Sl value =B2 B2- All Costs Present or uniform value for Mi valueCL CIE C1402 Present or uniform value for MO1 value=02 02- /C or -- Second alternative All Benefits Present or uniform value for Gi Value - 31 B1 31-32 present or uniform value for si valde 82 All Costs Presentar uniform value for MI value=Cl C1+02 Osmon uniform value for MOL value = 2 B/IG OBIC Which alternative? ( Putsign for the right