Engineering Econ HW8 Q1 1. A new engineer is evaluating whether to use a higher-voltage transmission line. It will cost$250,000 more initially, but it will reduce transmission losses. The optimistic, most likely, andpessimistic projections for annual savings are $25,000, $20,000, and $13,000. The interest rate is6%, and the transmission line should have a life of 30 years.a. What is the present worth for each estimated value?b. Use the range of estimates to compute the mean annual savings, and then determinethe present worth.

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Answered: 1. A new engineer is evaluating whether…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Cost component Alpha Beta Charlie development 100,000 immediately 150,000 year 1 10,000 immediately None Programming 45,000 immediately 35,000 year 1 45,000 immediately 30,000 year 1 None Operations 50,000 1-10 80,000 years 1-10 150,000 years 1-10 support 30,000 1-10 40,000 years 1-10 none If each system is expected to have a 10-year life, 1. calculate the net present value for each system if the cost of capital is 8%. 2. Specify which system should be selected and why
Your company is determing whether or not it should invest in a new pallet wrapping station. The station would cost $6,500 and your company's MARR is 13%. You estimate the purchasing a pallet wrapper would save you $2,000 in labor annually, and at the end of 3 years you would realize a salvage value of $400. How would you calculate the present worth of this investment in Excel?
Please answer question 2 with details on how to do it. Thank you.
Expert can u please help me with good formulae explanation
Explanation it correctly and not use of excel
2
ECONOMICS UPVOTE WILL BE GIVEN. PLEASE WRITE THE SOLUTIONS LEGIBLY. NO LONG EXPLANATION NEEDED. Shala Co. is making a decision about investing in new technology. It currently expects to earn Php 100,000,000 in its lifetime. If it invests in brand-new equipment today, its expected earnings will permanently increase by 5% per day. What is the expected value of investing in the new equipment?
6. You purchase a new piece of equipment for $65,000. Your net cash flow the first year is $18,000 but will increase by $2,500 per year the next year and the same for each year after. The equipment has a ten-year service life and a salvage value of $5,000. The interest rate is 9%. What is the annual capital cost and what is the equivalent annual savings?
8
Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of the first year. Each successive year yields a return that is $2,000 les than the pervious year's return. If the money is worth 8%, what is the equivalent present worth for the investment? What is the equivalent annual worth for the investment? What is the equivalent future worth for the investment?
Example: Consider a machine that costs 20000 TL and has a useful life of 5 years. Let the scrap value be 4000 TL at the end of 5 years. Let the annual operating and maintenance cost be 500 TL. The business expects to earn 5000 TL/year thanks to this machine. If l=10%, buy this machine?
2. Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $300,000 with annual costs of $35,000 and savings of $80,000 per year. The salvage value 10 years from now is projected to be $75,000. What rate of return will the firm make on this investment? Round your answer to the nearest .01 percent.

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