Question
ONE QUESTION, Part 3 of 3 of a multi-part question. From textbook Fundamentals of Engineering Economic Analysis, 5th edition, 4th chapter, problem number 26. Please
ONE QUESTION, Part 3 of 3 of a multi-part question. From textbook Fundamentals of Engineering Economic Analysis, 5th edition, 4th chapter, problem number 26. Please do not use Excel, show work using formulas and calculations. Please show cash flow diagrams, and feel free to ask me any follow up questions. Due in approximately 12 hours.
Two storage structure, given code names Y and Z, are being considered for a military base. The military uses a 5 percent/year expected rate of return and a 24-year life for decisions of this type. The relevant characteristics for each structure are shown below:
Structure Y | Structure Z | |
First Cost | $4500 | $1000 |
Estimated Life | 12 years | 24 years |
Est. Salvage Value | None | $1800 |
Annual Maintenance Cost | $1000 | $720 |
PART C: Which structure should be recommended?
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