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Y7 An engineer must decide between two ways to pump concrete to the top of a seven- story building. Plan 1 requires the leasing of
Y7
An engineer must decide between two ways to pump concrete to the top of a seven- story building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost $18,000 per year. In addition, an extra $20.5 per hour labor cost will be incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend ifthe equipment will be needed for 60 days per year? The MARR is 10% per year. The annual worth of plan 1 lease optimistic is $ The annual worth of plan 1 most likely is $ The annual worth of plan 1 pessimistic is $ The annual worth of plan 2 rental is $ Plan1 lease optimistic is (Click to select) v than rental of plan 2. Plan1 most likely is (Click to select) v than rental of plan 2. Plan 1 lease pessimistic isrv, (Click to select) an rental of plan 2. better higherStep by Step Solution
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