Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 52

The cash flows in Table 1 represent the potential annual savings associated with two different types of production processes, each of which requires an investment of $40,000.
Table 1
Assume an interest rate of 12%.
(a) Determine the equivalent annual savings for each process.
(b) Determine the hourly savings for each process if it will be in operation of 3,000 hours per year.
(c) Which process should be selected