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The AW of the current process to make motioncontrollers is

Engineering Economy (1) | 16th Edition | ISBN: 9780133439274 | Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling ISBN: 9780133439274 207

Solution for problem 18.4 Chapter 18

Engineering Economy (1) | 16th Edition

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Engineering Economy (1) | 16th Edition | ISBN: 9780133439274 | Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Engineering Economy (1) | 16th Edition

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Problem 18.4

The AW of the current process to make motioncontrollers is $62,000 per year. A replacementprocess under consideration has estimates of P =$64,000, AOC = $38,000, and n = 3 years. Threeengineers have given their opinions about what thesalvage value of the new process may be in 3 years as $10,000, $14,500, and $18,000. (a) Is the decisionto replace the process sensitive to the salvagevalue estimates at a MARR of 15% per year? (b) Ifsensitive, what is the lowest salvage value that justifiesthe replacement process?

Step-by-Step Solution:
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Anthony Lovill BE1500 HW #9 December 10, 2016 %This script uses the file gem_test1 and calculates the amount each line of %words adds up to. Then it analyzes which lines share the same value. clear format=[2 3 4 6 5 6 8 3 4 4 2 2 3 3 5 4 6 4 6 4 2 3 4 4 6 3 4 5 3 4 2 8 5 6 4 3 3 3 4 3 3 2 2 4 4 5 5 6 3 5 3 3 3 6 5 5 5 3 3 3 3 5 5 5 5 6 6 3 3 6 5 5 3 5 3 6 5 5 5 6]; f=length(format); i=1; j=1; num=0; fprintf('Line Value\n'); %The following finds the value of each line of text while i<=f newNum=0; if i==1 gemT = textread('gem_test1.txt','%s',format(i)); else k=1; while k<=i newNum=newNum+format(k); k=k+1; end gemT = textread('gem_test1.txt','%s',newNum); end gemT=upper(gemT

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Chapter 18, Problem 18.4 is Solved
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Textbook: Engineering Economy (1)
Edition: 16
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
ISBN: 9780133439274

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The AW of the current process to make motioncontrollers is