Answered: 2. Machine A has a price of $60,000,…

2. Machine A has a price of $60,000, annual operating cost of $24,000, and life of 5 years. Machine B has a price of $120,000, annual operating cost of $12,000, and life of 10 years. At MARR=10% per

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter12: Pricing Masonry, Carpentry, And Finishes Work

Section: Chapter Questions

Problem 7RQ

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Question

2. Machine A has a price of $60,000, annual operating cost of $24,000, and life of 5 years. Machine
B has a price of $120,000, annual operating cost of $12,000, and life of 10 years. At MARR=10% per
year, use EAC and PW to choose the better machine.
(a) Using EAC, which machine would you choose?

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