A firm is performing an economic evaluation of the following two equipment for a production activity. The following information is available. Equip 1 $23,000 Initial investment Useful life Salvage value 4 years Equip 2 $15,000 4 years $0 $0 Operating cost per hour $3.80 At a MARR of 4% per year, determine the breakeven number of operating hours per year. $5.20 The breakeven number of operating hours per year is OA. 2,046 OB. 1,102 OC. 1,810 OD. 1,574 More Info Discrete Compounding; /= 4% Single Payment Uniform Series Compound Amount Factor Present Worth Factor To Find F To Find P Compound Amount Factor To Find F Present Worth Factor Sinking Fund Factor Capital Recovery To Find P Given P Given F Given A Given A Given F To Find A Factor To Find A Given P N F/P P/F F/A P/A A/F A/P 1 1.0400 0.9615 1.0000 0.9615 1.0000 1.0400 2 1.0816 0.9246 2.0400 1.8861 0.4902 0.5302 3 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603 4 1.1699 0.8548 4.2465 3.6299 0.2355 0.2755 5 1.2167 0.8219 5.4163 4.4518 0.1846 0.2246 6 1.2653 0.7903 6.6330 5.2421 0.1508 0.1908 7 1.3159 0.7599 7.8983 6.0021 0.1266 0.1666 - X

A firm is performing an economic evaluation of the following two equipment for a production activity. The following information is available. Equip 1 $23,000 Initial investment Useful life Salvage value 4 years Equip 2 $15,000 4 years $0 $0 Operating cost per hour $3.80 At a MARR of 4% per year, determine the breakeven number of operating hours per year. $5.20 The breakeven number of operating hours per year is OA. 2,046 OB. 1,102 OC. 1,810 OD. 1,574 More Info Discrete Compounding; /= 4% Single Payment Uniform Series Compound Amount Factor Present Worth Factor To Find F To Find P Compound Amount Factor To Find F Present Worth Factor Sinking Fund Factor Capital Recovery To Find P Given P Given F Given A Given A Given F To Find A Factor To Find A Given P N F/P P/F F/A P/A A/F A/P 1 1.0400 0.9615 1.0000 0.9615 1.0000 1.0400 2 1.0816 0.9246 2.0400 1.8861 0.4902 0.5302 3 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603 4 1.1699 0.8548 4.2465 3.6299 0.2355 0.2755 5 1.2167 0.8219 5.4163 4.4518 0.1846 0.2246 6 1.2653 0.7903 6.6330 5.2421 0.1508 0.1908 7 1.3159 0.7599 7.8983 6.0021 0.1266 0.1666 - X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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