Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 42

Estimates for one of two process upgrades are as follows: first cost of $40,000, annual cost of $5000 per year, market value that decreases by $2000 per year to the salvage value of $20,000 after the expected life of 10 years. If a 4-year study period is used for AW analysis at 15% per year, the correct AW value is closest to:
a) $-15,000
b) $-11,900
c) $-7600
d) $-12,600