Assignment #4 - TECH-4020-082 (Econ Management for Tech 70945)
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Memorial University of Newfoundland *
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Course
4020
Subject
Industrial Engineering
Date
Feb 20, 2024
Type
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6
Uploaded by Brigadier_Discovery_Wombat9
Online Homework System Name: Class #: Instructor: Jaclyn Pitman Question 1: (1 point) Question 1 Question 4.24 Question Value =1 Assignment Worksheet 9/29/23 - 3:10:18 PM NDT Class: 202301 - TECH 4020-081 (F23) 70945 - JPitman Section #: Assignment: Assignment 4 Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below (all costs and profits are in dollars): |Smoothie ||Creamy | [First Cost 14,000 136,500 | [Service Life 12 Years |[14 Years | IAnnual Profit |l4,400 10,900 | lAnnual Operating Cost 1,025 13,500 | [Salvage Value 2,450 4800 | What method of analysis would you use to most easily select the model to purchase? [1/1] (a) PW (Standard) (b) AW (Standard) (c) PW (Repeated Lives) (d) All of the above (Please note that you may retry this assignment up to 5 times. You will have to click “Submit Assignment” after each attempt of the entire assignment and immediately after you do you will be able to view some Assignment Feedback (often including question solutions) using the 'View Details' button in the bottom right of the screen. The grade of your best attempt for the entire assignment is the one that will be recorded for this assignment.)
Question 2: (5 points) Question 2 Question 4.24 Question Value =5 Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below (all costs and profits are in dollars): | \\Smoothie |(Creamy | [First Cost 15,500 |[36,500 | Service Life [14 Years |12 Years | lAnnual Profit /4,450 10,800 | lAnnual Operating Cost 1,025 13,450 | [Salvage Value 2,150 5,200 | Which alternative is better if the MARR for Kiwidale Dairy is 17.6%. {Perform all calculations using 5 significant figures and round any monetary answers to the nearest cent}. What is the Annual Worth of the Smoothie Model? [2/5] What is the Annual Worth of the Creamy Model? [2/5] Which model would you choose (note that the answer is case sensitive)? [1/5] (Please note that you may retry this assignment up to 5 times. You will have to click “Submit Assignment” after each attempt of the entire assignment and immediately after you do you will be able to view some Assignment Feedback (often including question solutions) using the 'View Details' button in the bottom right of the screen. The grade of your best attempt for the entire assignment is the one that will be recorded for this assignment.) Question 3: (5 points) Question 3 Question 4.10 {Problem Value = 5} Nabil is considering buying a house while he is at university. The house costs 100,000 dollars today. Renting out part of the house and living in the rest over his five years at school will net, after expenses, 1,300 dollars per month. He estimates that he will sell the house after five years for 113,000 dollars. If Nabil's MARR is 18%, compounded monthly, should he buy the house? Use present worth analysis {Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}. What is the present worth of this project? [4/5] Should Nabil buy the house (type in 'yes' or 'no')? [1/5] (Please note that you may retry this assignment up to 5 times. You will have to click “Submit Assignment” after each attempt of the entire assignment and immediately after you do you will be able to view some Assignment Feedback (often including question solutions) using the 'View Details' button in the bottom right of the screen. The grade of your best attempt for the entire assignment is the one that will be recorded for this assignment.)
Question 4: (9 points) Question 4 Question 4.7 Problem Value =9 A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers 9,500 at the end of each year for the next five years, and then 18,000 dollars per year for the following 10 years. The second offers 10 payments, starting with 10,000 at the end of the first year, 13,000 dollars at the end of the second year, and sof forth, increasing by G dollars each year (i.e., the tenth payment will be (10,000 dollars + 9 x G dollars). Assume the genius uses a MARR of 9%. Which contract should the young genius choose? Use a present worth comparison and least common multiple of repeated lives {Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}. For one life of project one, the present worth is: [2/9] For repeated lives of project one, the present worth is: [2/9] For one life of project two the present worth is: [2/9] For repeated lives of project two, the present worth is: [2/9] Which project is the better one? (enter either 'P1' or 'P2"): [1/9] (Please note that you may retry this assignment up to 5 times. You will have to click “Submit Assignment” after each attempt of the entire assignment and immediately after you do you will be able to view some Assignment Feedback (often including question solutions) using the 'View Details' button in the bottom right of the screen. The grade of your best attempt for the entire assignment is the one that will be recorded for this assignment.)
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Question 5: (5 points) Question 5 Question 4.8 Problem Value =5 Water supply for an irrigation system can be obtained from a stream in some nearby mountains. Two alternatives are being considered, both of which have essentially infinite lives, provided proper maintenance is performed. The first is a concrete reservioir with a steel pipe system and the second is an earthen dam with a wooden aqueduct. Below are the costs associated with each. Compare the present worths of the two alternatives, using an interest rate of 10%. Which alternative should be chosen {Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}? Concrete Earthen Reservoir Dam [First Cost [dollars] |500,000 |/ 180,000 | lAnnual Maintenance Costs [dollars] || 2,250 10,000 | The cost Concrete Reservoir is (in PW dollars): [2/5] The cost of the Earthen Dam plus Aqueduct is (in PW dollars): [2/5] Which alternative should be chosen (enter either 'Reservoir' or 'Dam'? [1/5] (Please note that you may retry this assignment up to 5 times. You will have to click “Submit Assignment” after each attempt of the entire assignment and immediately after you do you will be able to view some Assignment Feedback (often including question solutions) using the 'View Details' button in the bottom right of the screen. The grade of your best attempt for the entire assignment is the one that will be recorded for this assignment.)
Question 6: (5 points) Question 6a Question Value =5 Tom is considering purchasing a £21,000 car. After five years, he will be able to sell the vehicle for £8,000. Petrol costs will be £1,900 per year, insurance £700 per year, and parking £550 per year. Maintenance costs will be £900, rising by £400 per year thereafter. The alternative is for Tom to take taxis everywhere. This will cost an estimated £6,500 per year. Tom will rent a vehicle each year at a total cost (to year-end) of £900 for the family vacation, if he has no car. If Tom values money at 10% annual interest, should he buy the car? Use an annual worth comparison method {Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}. The annual cost of operating an Auto is: [1/5] The annual cost of using taxis as an alternative is: [1/5] Which option should Tom take (enter either 'Auto’ or 'Taxi'? [1/5] Question 6b Margaret has a project that has a first cost of 28,000 dollars and returns 5,300 dollars per year for over it 10 year life. At the end of 10 years the salvage vale is $3000. Determine the payback period if the MARR is 5%. Round to two decimal places. Years [2/5] (Please note that you may retry this assignment up to 5 times. You will have to click “Submit Assignment” after each attempt of the entire assignment and immediately after you do you will be able to view some Assignment Feedback (often including question solutions) using the 'View Details' button in the bottom right of the screen. The grade of your best attempt for the entire assignment is the one that will be recorded for this assignment.) Question 7: (5 points) Question 7 Question 4.30 Problem Value =5 Diana usually uses a three-year payback period to determine if a project is acceptable. A recent project with uniform yearly savings over a five-year life had a payback period of almost exactly three years, so Diana decided to find the project's present worth to help determine if the project was truly justifiable. However, that calculation didn't help either since the present worth was exactly 0. What interest rate was Diana using to calculate the present worth? The project has no salvage value at the end of its five-year life. Diana's interest rate was (just input the number...and round to the nearest whole pecent): % [5/5] (Please note that you may retry this assignment up to 5 times. You will have to click “Submit Assignment” after each attempt of the entire assignment and immediately after you do you will be able to view some Assignment Feedback (often including question solutions) using the 'View Details' button in the bottom right of the screen. The grade of your best attempt for the entire assignment is the one that will be recorded for this assignment.)
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