A firm is performing an economic evaluation of the following two equipment for a production activity. The following information is available. Equip 1 $23,000 Initial investment Useful life Salvage value 4 years Equip 2 $15,000 4 years $0 $0 Operating cost per hour $3.80 At a MARR of 4% per year, determine the breakeven number of operating hours per year. $5.20 The breakeven number of operating hours per year is OA. 2,046 OB. 1,102 OC. 1,810 OD. 1,574 More Info Discrete Compounding; /= 4% Single Payment Uniform Series Compound Amount Factor Present Worth Factor To Find F To Find P Compound Amount Factor To Find F Present Worth Factor Sinking Fund Factor Capital Recovery To Find P Given P Given F Given A Given A Given F To Find A Factor To Find A Given P N F/P P/F F/A P/A A/F A/P 1 1.0400 0.9615 1.0000 0.9615 1.0000 1.0400 2 1.0816 0.9246 2.0400 1.8861 0.4902 0.5302 3 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603 4 1.1699 0.8548 4.2465 3.6299 0.2355 0.2755 5 1.2167 0.8219 5.4163 4.4518 0.1846 0.2246 6 1.2653 0.7903 6.6330 5.2421 0.1508 0.1908 7 1.3159 0.7599 7.8983 6.0021 0.1266 0.1666 - X
A firm is performing an economic evaluation of the following two equipment for a production activity. The following information is available. Equip 1 $23,000 Initial investment Useful life Salvage value 4 years Equip 2 $15,000 4 years $0 $0 Operating cost per hour $3.80 At a MARR of 4% per year, determine the breakeven number of operating hours per year. $5.20 The breakeven number of operating hours per year is OA. 2,046 OB. 1,102 OC. 1,810 OD. 1,574 More Info Discrete Compounding; /= 4% Single Payment Uniform Series Compound Amount Factor Present Worth Factor To Find F To Find P Compound Amount Factor To Find F Present Worth Factor Sinking Fund Factor Capital Recovery To Find P Given P Given F Given A Given A Given F To Find A Factor To Find A Given P N F/P P/F F/A P/A A/F A/P 1 1.0400 0.9615 1.0000 0.9615 1.0000 1.0400 2 1.0816 0.9246 2.0400 1.8861 0.4902 0.5302 3 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603 4 1.1699 0.8548 4.2465 3.6299 0.2355 0.2755 5 1.2167 0.8219 5.4163 4.4518 0.1846 0.2246 6 1.2653 0.7903 6.6330 5.2421 0.1508 0.1908 7 1.3159 0.7599 7.8983 6.0021 0.1266 0.1666 - X
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A firm is performing an economic evaluation of the following two equipment for a production activity. The following information is available.
D
Initial investment
Useful life
Salvage value
Equip 1
$23,000
4 years
$0
Operating cost per hour
$3.80
At a MARR of 4% per year, determine the breakeven number of operating hours per year.
Equip 2
$15,000
4 years
$0
$5.20
The breakeven number of operating hours per year is
OA. 2,046
OB. 1,102
C. 1,810
OD. 1,574
More Info
Discrete Compounding; /= 4%
Single Payment
Uniform Series
Compound
Amount
Present
Factor
Worth Factor
To Find F
To Find P
Compound
Amount
Factor
To Find F
Present
Worth Factor
To Find P
Given P
Given F
Given A
Given A
Given F
Sinking
Fund
Factor
To Find A
Capital
Recovery
Factor
To Find A
Given P
N
F/P
P/F
F/A
P/A
A/F
A/P
1
1.0400
0.9615
1.0000
0.9615
1.0000
1.0400
2
1.0816
0.9246
2.0400
1.8861
0.4902
0.5302
3
1.1249
0.8890
3.1216
2.7751
0.3203
0.3603
4
1.1699
0.8548
4.2465
3.6299
0.2355
0.2755
5
1.2167
0.8219
5.4163
4.4518
0.1846
0.2246
67
1.2653
0.7903
6.6330
5.2421
0.1508
0.1908
1.3159
0.7599
7.8983
6.0021
0.1266
0.1666
6.7007
0.4005
04405](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3059451a-17af-418d-b501-2e04951cbb86%2F8ddae943-4911-4787-8354-b083db2697d8%2Fyaqp1ir_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A firm is performing an economic evaluation of the following two equipment for a production activity. The following information is available.
D
Initial investment
Useful life
Salvage value
Equip 1
$23,000
4 years
$0
Operating cost per hour
$3.80
At a MARR of 4% per year, determine the breakeven number of operating hours per year.
Equip 2
$15,000
4 years
$0
$5.20
The breakeven number of operating hours per year is
OA. 2,046
OB. 1,102
C. 1,810
OD. 1,574
More Info
Discrete Compounding; /= 4%
Single Payment
Uniform Series
Compound
Amount
Present
Factor
Worth Factor
To Find F
To Find P
Compound
Amount
Factor
To Find F
Present
Worth Factor
To Find P
Given P
Given F
Given A
Given A
Given F
Sinking
Fund
Factor
To Find A
Capital
Recovery
Factor
To Find A
Given P
N
F/P
P/F
F/A
P/A
A/F
A/P
1
1.0400
0.9615
1.0000
0.9615
1.0000
1.0400
2
1.0816
0.9246
2.0400
1.8861
0.4902
0.5302
3
1.1249
0.8890
3.1216
2.7751
0.3203
0.3603
4
1.1699
0.8548
4.2465
3.6299
0.2355
0.2755
5
1.2167
0.8219
5.4163
4.4518
0.1846
0.2246
67
1.2653
0.7903
6.6330
5.2421
0.1508
0.1908
1.3159
0.7599
7.8983
6.0021
0.1266
0.1666
6.7007
0.4005
04405
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