Question

please explain

$250,000 is invested in equipment having a salvage value equal to $250,000(0.80”) after n years of use. O&M costs equal $60,000 the first year and increase $8,000 per year. Based on a MARR of 10%, what are the optimum replacement interval and minimum EUAC?

Answer 1

Answer Page No 0 Given that, Invested amount = $250,000 OGM cost is equal to $60,000 ре зат and incoreases $8000 MARR = 10. = 0.1 Ei Salvage value equal to $259000(0.20") obter nyor of use .. Salvage value = $250,000 x 0.8" (in - No. of years) OEM cosf = Previous ofn cost+ 8000 EAC Capital recovery = ($250,000 – salvage value) x[Alp,10%,0) + [ sbage value x 107] Eac maintenance = copco +(2000 Cala, 107.,n)] (Alp, 10%,0) = {(i+1)n. (n= No. of years ) (1+z)?-1 C er 100%. (A/6, 10%, 1) = (1+²) - in 1 (isor . :(1+i) n i L no No of grs)

Total EUAC = cost orecovery + EAC maintenance Coast olecovery + Esc maintenance Page.no @ FAC year EVAC O-os m Salvage value OEM coef Conf recovery fader EAC mwisterone Total $250,000 $250,000 $60,000 $.45000 $60,000 $135000 $160,000 $68000 $64857, 14286 $63809.52381 $131666.7 $128000 76000 $61858100604 $67492044 713 12935015 $102400 $ 84000 $56803.49063 $51049-3428) $ 1248528 $81900 $92000 $52531.08057$ 7446).00768 $127012.1 $65536 $100,000 $48907.89581 $ 74788.45743 $12669614 $ 52428.8 $108,000 $45825.09106 $80912192017 $ 106798 641943.04 $116000 $43193.33647 $84035.82875 $ 104229.2 $23554.432 6124000 $ 40939.1663) $86948.81187 $ 10 4918 $26843.5456$132000 39001,03985 $89803-68409 $12880517 4 4 too too oo - Optimum replacement interval is abter 6 years Minimum EU AC = $126696.4 at 6 years :: Minimum EVAC = $126696.4