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Elementary,Middle School,High School,College,University,PHD
Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
4.22   The manager of engineering at the 900- megawatt Hamilton Nuclear Power Plant has three options to supply personal safety equip- ment to employees. Two are  vendors who sell the items, and a third will rent the equipment for $50,000 per year, but for no more  than 3 years per contract. These items have relatively short lives due to constant use. The MARR is 10% per year.
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Initial cost, $Â Â Â Â Â Â Â Â Â Â -75,000Â Â Â Â Â Â Â -125,000 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0
Annual upkeep
cost, $/year             -27,000         -12,000                 0
Annual rental
cost, $ per year                 0                     0       -50,000
Salvage value, $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0Â Â Â Â Â Â Â Â Â Â Â Â Â 30,000Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0
Estimated life,                   2                     3      Maximum
years                                                                           of 3
Â
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a.  Select from the two sales vendors using the LCM and PW analysis.
b.  Determine which of the three options is cheaper over a study period of 3 years.
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