In: Economics
For the below ME alternatives , which machine should be selected based on the AW analysis. MARR=10%.
Machine A | Machine B | Machine C | |
First cost, $ | 15000 | 30000 | 11,564 |
Annual cost, $/year | 10,709 | 6,000 | 4,000 |
Salvage value, $ | 4,000 | 5,000 | 1,000 |
Life, years | 3 | 6 | 2 |
Answer the below questions :
C- AW for machine C =