****o:
I am stuck on how to start the a break even analysis for the 2 options below without being provided MARR. We were taught how to use excel and interest tables, so I dont know how to calculate when I dont have MARR. Please note, I am just asking how to start this, not looking for a handout. The question is summarized in the table below, but the question is looking for the following calculations:
a) How many hours per shift is a generator needed if the contractor is indifferent between the two generators?
b)What is the annual cost if the generator is needed for 2.5 hours per shift and what generator is preferred?
I am stuck on how to start the a break even analysis for the 2 options below without being provided MARR. We were taught how to use excel and interest tables, so I dont know how to calculate when I dont have MARR. Please note, I am just asking how to start this, not looking for a handout. The question is summarized in the table below, but the question is looking for the following calculations:
a) How many hours per shift is a generator needed if the contractor is indifferent between the two generators?
b)What is the annual cost if the generator is needed for 2.5 hours per shift and what generator is preferred?
Generator | Fixed Costs ($/yr) | O&M Costs ($/hour) | Shifts | Working Days |
1 | 4000 | 7.00 | 3-8 hour | 250 |
2 | 8000 | 5.50 | 3-8 hour | 250 |