Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please draw the cash flow diagram. Tnx 4. Compare the equivalent uniform annual cost of service for two emergency power plants. Unit A has a

image text in transcribedPlease draw the cash flow diagram. Tnx

4. Compare the equivalent uniform annual cost of service for two emergency power plants. Unit A has a first cost of $40,000, an expected life of 8 years, and no net salvage value. Annual disbursements for operation and maintenance are expected to be $1,800. Unit B has a first cost of $50,000, and expected 10 year life, and an estimated net salvage value of $5,000. Annual operation and maintenance is expected to be $1,200. If Unit B is chosen, additional annual income tax payment of $550 will be required. Use an i* of 14% after income taxes. 2. A building contractor purchased a dirt scraper for $35,000. He maintained the scraper at cost of $2,500 per year. He overhauled the machine 4 years after the purchase at a cost of $4,000. Two years after the overhaul, he sold the scraper for $18,000. What was his equivalent uniform annual cost if the interest rate was 10% per year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Engineering Economic Analysis

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

9th Edition

978-0195168075, 9780195168075

More Books

Students also viewed these Finance questions