Reference no: EM131179736
Project A has a first cost of $3,500, annual operating and maintenance costs of $1,900, annual savings of $2,300, and a salvage value of $1,800 at the end of its 5 year useful life.
Project B has a first cost of $6,000, annual operating and maintenance costs of $1,600, annual savings of $2,500, and a salvage value of $2,000 at the end of its 7 year useful life.
Using a MARR of 5%, answering the following questions:
What is the equivalent uniform annual worth (EUAW) of project A?
What is the equivalent uniform annual worth (EUAW) of project B?
Assuming a project will be replaced with an identical project at end of life, which project should be adopted by the company?
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: Project A has a first cost of $3,500, annual operating and maintenance costs of $1,900, annual savings of $2,300, and a salvage value of $1,800 at the end of its 5 year useful life. What is the equivalent uniform annual worth (EUAW) of project A?
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