is economic engineering question.
Please calculate using net present analysis. Dont use excel.
Write clear steps and circle correct answer pleas. Thanks!
Your company needs a new widget injection molder. They are considering two options, as shown in the table below. Initial Cost Annual Benefit Annual O&M Costs Useful Life Option A Option B $8,000 $15,000 $5,500 $7,250 $500 $1,250 2 vears 3 years If the widget molder will be needed for 6 years, and your firm’s MARR is 8%, which molder should you recommend to your boss? Your boss has asked you to report the net present worth of your recommendation as well.
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