A 50 horsepower motor is required to power a large capacity blower. 6-28....
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A 50 horsepower motor is required to power a large capacity blower.
6-28. A 50 horsepower motor is required to power a large capacity blower. Two motors A and B, mutually exclusive, have been proposed. Their cost data are given in the next page: (6.5) 6-3 Motor A Motor B pl Capital investment Annual expenses tr $9,000 $5,000 10 years $8,000 $6,000 15 years l Useful life Market value at the end of useful life $0 $1,000 vaasey e The MARR is 5% per year. (6.5) sd ttbaU a. Determine which motor should be selected if the repeatability assumption applies. b. Determine which alternative should be selected if the analysis period is 15 years, the repeatability assumption does not apply and the machines can be leased for $12,000 per year after the useful life of either machine is over. .JannC
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