Solution-Determine the better of the given two options

Determine the better of the given two options

Reference no: EM13882017

A manufacturer of hydraulic equipment is trying to determine whether it should use monofl ange double block and bleed (DBB) valves or a multi-valve system (MVS) for chemical injection. The costs are shown below. Use an AW-based rate of return analysis and a MARR of 18% per year to determine the better of the two options.

	DBB	MVS
First cost, $	40,000	71,000
Annual cost, $ per year	60,000	65,000
Salvage value, $	0	18,000
Life, years	2	4

Reference no: EM13882017

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Determine the better of the given two options

Reference no: EM13882017

Reference no: EM13882017

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