I need to solve this question in Engineering economics Austin General Hospital is evaluating new office equipment offered by threecompanies. The equipment have the following characteristics:Initial costAnnual operating costAnnual benefit(revenue)Salvage valueUseful life (years)Company A$15,0001,6008,0003,0004Company B$25,00040013,0006,0004Company C$20,00090011,0004,5004Determine the present worth (net present value) of the equipment from each of thecompanies, and decide which one should be selected. MARR = 15%.

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I need to solve this question in Engineering economics

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

I need to solve this question in Engineering economics

Austin General Hospital is evaluating new office equipment offered by three
companies. The equipment have the following characteristics:
Initial cost
Annual operating cost
Annual benefit(revenue)
Salvage value
Useful life (years)
Company A
$15,000
1,600
8,000
3,000
4
Company B
$25,000
400
13,000
6,000
4
Company C
$20,000
900
11,000
4,500
4
Determine the present worth (net present value) of the equipment from each of the
companies, and decide which one should be selected. MARR = 15%.

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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