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MHrtz Sep25-10 07:47 PM

Engineering Economics Present Worth
 
1. The problem statement, all variables and given/known data

Three different alternatives shown below are being considered. Assume that alternatives X and Z are replaced at the end of their lives


Alt. X Alt. Y Alt. Z
Initial Cost - 6000 1000 1500

Annual Benefits - 810 125 230

Useful Life - 20 infinite 10

MARR = 12% for all

Find the Net Present Worth for Alt. X, Alt. Y, and Alt. Z.

2. Relevant equations

capitalized cost A = iP

F = A [((1 + i)n - 1))/i]

P = A [((1 + i)n - 1))/i(1 + i)n]

3. The attempt at a solution

I found the NPW for Alt. Y

P = (125/.12) - 1000 = 41.67

I'm still stuck on X and Z.

MHrtz Sep27-10 08:19 PM

Re: Engineering Economics Present Worth
 
Nevermind. One of choices was a typo so I got it right.


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