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Problem 3 (12 points) A piece of equipment has an initial cost of $450,000. The annual O&M costs are $47,000 and increase $3500 per year.
Problem 3 (12 points) A piece of equipment has an initial cost of $450,000. The annual O&M costs are $47,000 and increase $3500 per year. The annual revenue is $85,000 and increase $5300 per year. The equipment has a life span of 8 years and a salvage value of $225,000. Based on a MARR of 7%, determine the following: If the project is viable based on Net Present Worth. NPW b. Determine the amount the annual O&M costs have to be decreased to make the project viable. C. Determine the amount the annual benefit has to increase to make the project viable
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