Engineering Economic Analysis Procedure 1. Problem definition Development of alternatives Development of Selection of a dec Pective outcomes crite criterion Analysis and comparison of alternatives. Selection of the preferred alternative PROBLEM: Performance monitoring and post evaluation of results. Acme Semiconductor is expanding its facility and needs to add equipment. There are three process tools under consideration. You have been asked to perform an economic analysis to i select the most appropriate tool to acquire. You have gathered the following information for evaluation. Each of these tools has a useful life of seven years. Acme's accounting staff has established a company-wide MARR of 8% per year. Which one of the process tools should be selected? At the conclusion of the useful life, the investment will be sold (Market Value ¡Salvage Value). Tool B Tool C = Tool A Investment costs $55,000 $45,000 $80,000 Annual expenses $6,250 $8,550 $3,200 Annual revenue Market value $18,250 $16,750 $20,200 $18,000 $3,750 $22,000 METHODS TO USE: AW/AC PW/PWC EUAW/EUAC CC ROR
