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Problem data:
90/10 | 70/30 | |
P | $9,700 | $16,500 |
n | 7 yrs | 10 yrs |
X | $1,400 | $0.0 |
i% | 0.08 | 0.08 |
t | 0.44 | 0.44 |
S | 0 | 0 |
Solution:
90/10 + maintenance | 70/30 | |
-P | -$9,700 | -$16,500 |
{t(P-S)/n}(P/A, i%, n) | $3,174 | $4,872 |
-(1-t)(X)(P/A, i%, n) | -$4,082 | 0 |
S(P/F, i%, n) | 0 | 0 |
PW | -$10,607.40 | -$11,628 |
A | -$2,037 | -$1,733 |
The 70/30 copper-nickel alloy becomes the most economical
