Question 314) In order to make a replacement decision, a firm calculated the equivalent annual cost of owning an asset as follows:ReplacementPeriodSalvageValueEAC CapitalCostsAnnual Repair EAC RepairCostsCosts1$1420$1,2872$1,102$1,082$400$1893$910$976S600$2984S795$812S800$437O a. in 4 yearsO b. in 3 yearsOc.in 1 yearO d. in 2 years

Annual Cost is the cost of utilizing the estimated units of cost of living in a particular unit. It…

4) In order to make a replacement decision, a firm calculated the equivalent annual cost of owning an asset as follows: Replacement Salvage Period EAC Capital Annual Repair EAC Repair Costs Value Costs Costs 1 $1420 $1.287 2 $1,102 $1,082 $400 $189 3 $910 $976 S600 $298 S795 $812 S800 $437 O a. in 4 years Ob in 3 years Oc in 1 year Od in 2 years

4) In order to make a replacement decision, a firm calculated the equivalent annual cost of owning an asset as follows: Replacement Salvage Period EAC Capital Annual Repair EAC Repair Costs Value Costs Costs 1 $1420 $1.287 2 $1,102 $1,082 $400 $189 3 $910 $976 S600 $298 S795 $812 S800 $437 O a. in 4 years Ob in 3 years Oc in 1 year Od in 2 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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