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YR 0 YR 1 YR 2 YR 3 YR 4 YR 0 YR 1 YR 2 YR 3 YR 4

YR 0 YR 1 YR 2 YR 3 YR 4 - PowerPoint Presentation

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Uploaded On 2018-11-27

YR 0 YR 1 YR 2 YR 3 YR 4 - PPT Presentation

YR 5 PE 3 Economic Analysis alternative 1 Stake Body Truck Purchase 35325 11000 11000 YR 0 35000 per truck 325 per canvas cover 1 truck 35325 Recurring end of each year ID: 734043

cost 000 recurring alternative 000 cost alternative recurring annual 800 van truck terminal amp uniform year 325 circle sunk

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Presentation Transcript

Slide1

YR 0

YR 1

YR 2

YR 3

YR 4

YR 5

PE

3

Economic Analysis alternative 1 – Stake Body Truck Purchase

$35,325

$11,000

$11,000

YR 0 = ($35,000 per truck + $325 per canvas cover) * 1 truck = $35,325

Recurring end of each year =

Annual Operations & Maintenance (O & M or OMA) Cost =

$0.275 per mile * 50 miles per round trip * 800 round trips per year=

$

11,000

YR 6 =

($10,000)

per truck * 1 truck = ($10,000)

$11,000

$11,000

$11,000

YR 6

$11,000

($10,000)Slide2

Alternative 1Slide3

YR 0

YR 1

YR 2

YR 3

YR 4

YR 5

PE 7

Economic Analysis alternative 2 – CARGO VAN Purchase

$58,800

$9,000

$9,000

YR 0 = $58,800 per van * 1 van = $58,800

Recurring end of each year =

Annual Operations & Maintenance (O & M or OMA) Cost =

$0.225 per mile * 50 miles per round trip * 800 round trips per year=

$9,000

YR 6 =

($2,000)

per van *

1

van = ($2,000)

$9,000

$9,000

$9,000

YR 6

$9,000

($2,000)Slide4

Alternative 2Slide5

5. The O & M cost in Alternative 1 is an example of what kind of cost? (circle one)

  Non recurring, Sunk cost, Terminal value, Salvage Value, or Recurring Cost

6. In Alternative 1 The truck can be sold for $10,000. This can also be referred to as the: (circle one)  Non recurring, Sunk cost, Salvage value, or Recurring Cost

 7. Alternative 2 requires a van costing $58,800, this is an example of what kind of cost? (circle one) Non recurring, sunk

cost, Terminal value, or Recurring Cost 8. What is the Uniform Annual cost without terminal value for Alternative 2?  

9. What is the total discounted annual cost for Alternative 1?10. What alternative would you recommend based on Uniform Annual Cost (with terminal value)? Why

?11.

What is the Uniform Annual cost with terminal value for Alternative 2? 

d

. $22,505

b. $83,219

Alternative 1, because it has a lower Uniform Annual Cost (with terminal value);

a. $22,246

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