For producing a specific product Two processes can .be used Process X will have a first cost of $160,000, an operating cost of $7000 per quarter, and a salvage value of $40.000 after its 2-year life

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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For producing a specific product Two processes can
.be used
Process X will have a first cost of $160,000, an
operating cost of $7000 per quarter, and a salvage
.value of $40,000 after its 2-year life
Process Y will have a first cost of $210,000, an
operating cost of $5000 per quarter, and a $26,000
.salvage value after its 4-year life
At an interest rate of 8% per year, compounded
quarterly, using present worth analysis, which of the
(following is correct? (PWX/PWY / right Alternative
Y/228,950-$/318,328-$
O
Y/258,950-$/328,328-$
Y/218,950-$/328,328-$
O
X/258,950-$/228,328-$
Transcribed Image Text:For producing a specific product Two processes can .be used Process X will have a first cost of $160,000, an operating cost of $7000 per quarter, and a salvage .value of $40,000 after its 2-year life Process Y will have a first cost of $210,000, an operating cost of $5000 per quarter, and a $26,000 .salvage value after its 4-year life At an interest rate of 8% per year, compounded quarterly, using present worth analysis, which of the (following is correct? (PWX/PWY / right Alternative Y/228,950-$/318,328-$ O Y/258,950-$/328,328-$ Y/218,950-$/328,328-$ O X/258,950-$/228,328-$
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