YOLO Construction Co. is planning to purchase a new truck Company uses MARR as 10% per year. Evaluate the following two altematives by Present Worth Analysis using Least Common Multiple (LCM) technique. Select the PW value of Alternative A A First Cost, $ Annual Income, S/year -170000 -130000 22000 and increasing 29000 starting from year 1 by $500 each year Annual Cost, S/year Major Maintenance Cost, every 3 years, $ Salvage Value, $ Life, years -7000 -11000 -10000 17000 10000 Select one: O a. -195520.8 O b. -146445.8 Oc.-116200 O d. -191185 O e.-142110

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
YOLO Construction Co. is planning to purchase a new truck Company uses MARR as 10%%
per year. Evaluate the following two altematives by Present Worth Analysis using Least
Common Multiple (LCM) technique. Select the PW value of Alternative A
First Cost, $
-170000
-130000
Annual Income, S/year
22000 and increasing
starting from year 1 by $500
each year
29000
Annual Cost, S/year
-7000
-11000
Major Maintenance Cost,
every 3 years, S
Salvage Value, S
Life, years
|-10000
17000
10000
4
Select one:
O a. -195520.8
O b. -146445.8
O c. -116200
O d. -191185
O é. -142110
Transcribed Image Text:YOLO Construction Co. is planning to purchase a new truck Company uses MARR as 10%% per year. Evaluate the following two altematives by Present Worth Analysis using Least Common Multiple (LCM) technique. Select the PW value of Alternative A First Cost, $ -170000 -130000 Annual Income, S/year 22000 and increasing starting from year 1 by $500 each year 29000 Annual Cost, S/year -7000 -11000 Major Maintenance Cost, every 3 years, S Salvage Value, S Life, years |-10000 17000 10000 4 Select one: O a. -195520.8 O b. -146445.8 O c. -116200 O d. -191185 O é. -142110
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Benefit Cost Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education