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Solve clearly 2. The cost estimates for two machines are under consideration. The Can-Do construction company wants the economic evaluation done over a 6-year period
Solve clearly
2. The cost estimates for two machines are under consideration. The Can-Do construction company wants the economic evaluation done over a 6-year period at an interest rate of 8% per year. The present worth of machine A is closest to: A B First Cost, $ Bel Che-75,000 -85,000 Annual cost, $/yr -2,500 -2,000 Salvage value after 6 years, $ 12,000 13,000 small (a) Less than $-77,250 (b) $-77, 543 (c) $-78,994 (d) $-80,315 (e) $$-82,765 (f) More than $-83,000 3. A small dam will cost $15,000,000 to build, $700,000 per year to maintain, and it will have to be replaced every 40 years. At an interest rate of 8% per year, the perpetual equivalent annual worth is closest to: (a) $-1,200,000 (b) $-1,256,000 (c) $-1,357,900 (d) $-1,900,900 (e) $-1,957,900 (f) More than $-2,000,000Step by Step Solution
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