For Machines X and Y shown, what is the difference between the EUAW for the HICP and the LICP? Machine X Machine Y Initial cost $547,000 $985,000 Life 4 6 Inflation (for costs and benefit increase) 4.5% p. y. MARR 12% p. y. c. y. Project life 14 years First year estimated costs $191,450 $384,150 First year estimated benefits $393,840

Sep 8, 2023

For Machines X and Y shown, what is the difference between the EUAW for the HICP and the LICP?

 

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For Machines X and Y shown, what is the difference between the EUAW for the HICP and the LICP? Machine X Machine Y Initial cost $547,000 $985,000 Life 4 6 Inflation (for costs and benefit increase) 4.5% p. y. MARR 12% p. y. c. y. Project life 14 years First year estimated costs $191,450 $384,150 First year estimated benefits $393,840
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  Machine X Machine Y
Initial cost $547,000 $985,000
Life 4 6
Inflation (for costs and benefit increase) 4.5% p. y.  
MARR 12% p. y. c. y.
Project life  14 years
First year estimated costs $191,450 $384,150
First year estimated benefits $393,840 $640,250
Salvage value of machine today $143,500 $172,400
Market value of machine today with 2 years of use $246,150 $443,250

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