what is the equivalent annual cost of machine 1 Equivalent annual cost EAC is the cost per year for owning or maintaining an asset over its lifetime Calculating EAC is useful in budgeting decision making by converting the price of an asset to an
Equivalent Annual Cost is defined as the net present value of any purchased asset plus maintenance and operations costs divided by the current value of the annuity factor In other words EAC aids You calculate the PV of one machine For the equivalent annual cost you divide the PV by the annuity discount factor for 3 years at 10 For more explanation
what is the equivalent annual cost of machine 1
what is the equivalent annual cost of machine 1
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Capitalized Cost Analysis SAMPLE PROBLEM Engineering Economics
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Equivalent Annual Cost Meaning Formula Example And More
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Free Equivalent Annual Cost EAC Calculator Given 2 Items machines with an Investment Cost expected lifetime and maintenance cost this will calculate the EAC for each Equivalent annual cost or EAC is the purchase price of a piece of equipment plus the cost of operation and maintenance averaged over the number of years of its
The question reads A machine costing 150 000 has a useful life of eight years after which its estimated resale value will be 30 000 Annual running costs will Machine 1 has an initial cost of 200 000 and will have a scrap value of 25 000 after four years Machine 2 has an initial cost of 225 000 and will have a scrap value of 50 000
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Annual Equivalent Cost A machine costing 150 000 has a useful life of 8 years after which time its estimated resale value will be 25 000 Annual running costs To determine the equivalent uniform annual cost of machine A calculate the annual cost by adding the annual maintenance cost to the present value annuity factor of the first cost
A machine has a first cost of 126 000 an annual operation and maintenance cost of 1 850 a life of 8 years and a salvage value of 27 000 At the end What is the equivalent annual cost in years 1 through 7 of a contract that has a first cost of 70 000 in year 0 and annual costs of 15 000 in years 3 through 7 Use an interest
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what is the equivalent annual cost of machine 1 - Machine 1 has an initial cost of 200 000 and will have a scrap value of 25 000 after four years Machine 2 has an initial cost of 225 000 and will have a scrap value of 50 000