name of the book: Engineering Economy 16th edition chapter 13 question 7p from w

Question

name of the book: Engineering Economy 16th edition
chapter 13 question 7p
from where did the 1000 come from?

Chegg BOOKS STUDY TUTORS TEST PREP INTERNSHIPS COLLEGES Search TEXTBOOK SOLUTIONS FOR Engineering Economy 16th Edition E Chapter 13, Problem 7P Show all steps Problem A four-year-old truck has a present net realizable value of $6,000 and is now expected to have a market value of $1,800 after its remaining three-year life. Its operating disbursements are expected to be $720 per year. An equivalent truck can be leased for $0.40 per mile plus $30 a day for each day the truck is kept. The expected annual utilization is 3,000 miles and 30 days. If the before-tax MARR is 15%, find which alternative is better by comparing before-tax equivalent annual costs a. using only the preceding information (Problem);

Explanation / Answer

Might be they have deducted wrongly $1000 .The correct answer is as follows.

Capital Recovery = (6000)(NP,15%,3)+1800(0.15)

= (6000)(1+0.15)-3+1800(0.15)

= 3945.1+270 = $4215.1

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.