Calculate the equivalent uniform annual cash flow

Reference no: EM13317096

CARP, Inc. wants to evaluate two methods of shipping their products. The following cash flows are associated with each alternative:

Data A |B

life(years) 10 |10

first cost $700,000 |$1,512,000

M&O $18,000 |$9,000

M&O gradient $900 |$775

Annual benefit $154,000 |$303,000

salvage value $142,000 |$210,000

Annual rare based on amount of products which can ordinarily be shipped each year as a function of the amount of vehicles or service purchased with the first cost and the M&O costs. Using a MARR of 15%, calculate the equivalent uniform annual cash flow (EUAB-EUAC) for each alternative; determine the most desirable alternative based on the results.

Reference no: EM13317096

Questions Cloud

What is the initial angular velocity of the turbine : A wind turbine is initially spinning at a constant angular speed. As the wind's strength gradually increases, the turbine experiences a constant angular acceleration of0.190 rad/s2. What is the initial angular velocity of the turbine

Does each firm have a dominant strategy : Does each firm have a dominant strategy? If so, explain and what that strategy is and what is the Nash equilibrium? Explain where the Nash equilibrium occurs in the payoff matrix.

Find the direction of the electric field at the origin : A +20 nC point charge is placed on the x axis at x =2.0 m, What is the direction of the electric field at the origin

Create a server process that acts as a multiple client cpu : Prepare your own test data. On paper, work through your data showing Gantt charts, CPU utilization, and turnaround times. Use these same values for testing your program.

Calculate the equivalent uniform annual cash flow : Annual rare based on amount of products which can ordinarily be shipped each year as a function of the amount of vehicles or service purchased with the first cost and the M&O costs.

What is the amplitude of this motion : A point rotates about the origin in the xy plane at a constant radius of 0.132 m and angular velocity of 8.52 rad/s. What is the amplitude of this motion

Compute the degree of the curve given the radius r : Use the chord definition to compute the curve parameters L, T, E, M, LC, R, and stations of the PC and PT for the railroad curve with DC = 2deg0'00', I=18deg,0'00' and PI station =25+50.00ft

Find the amount of ice melted : Steam at 100°C is added to ice at 0°C. Find the amount of ice melted and the final temperature when the mass of steam is 11 g and the mass of ice is 53 g

Design and implementation of information systems : Individual Research Project: Critical issues and innovative approaches to planning, design, and implementation of information systems.

User Account

All Pages