Two methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $520,000, an AOC of $190,000 per year, and $180,000 salvage value after its 3-year life. Method 2 will cost $890,000 with an AOC of $180,000 and a $180,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the salvage value of Method 2 will be 26% higher after three years than it is after five years. If the MARR is 9% per year determine: Method the company should select? (A) Method 1 (B) Method 2

Two methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $520,000, an AOC of $190,000 per year, and $180,000 salvage value after its 3-year life. Method 2 will cost $890,000 with an AOC of $180,000 and a $180,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the salvage value of Method 2 will be 26% higher after three years than it is after five years. If the MARR is 9% per year determine: Method the company should select? (A) Method 1 (B) Method 2

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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