1. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative A В Capital investment $272,00 $346,000 Annual expenses Useful life (years) Salvage value 28,800 19,300 25,000 40,000

1. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative A В Capital investment $272,00 $346,000 Annual expenses Useful life (years) Salvage value 28,800 19,300 25,000 40,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

741 Ny 7:0 Mond Content X + ultra/courses/_99030_1/cl/outline manipic cempo me manipic accompis. INIU Force Completion. This test can be saved and resumed later. BILLETTE Your answers are saved automatically. * Question Completion Status: QUESTION 1 The goal of the consumer is to maximize the total utility or satisfaction derived from their purchase choices, given the unique budget constraint. To calculate total utility of a given combination of T-shirts and movies, one would use the following approach: O a. For a given combination of T-shirts and movies, survey a group of individuals to determine an average for utils to be assigned to the number of T-shirts and movies. O b. For a given combination of T-shirts and movies, use Google to identify the number of utils associated with the number of T-shirts and movies and thenlum them. O c. For a given combination of T-shirts and movies, assign a number of utils to that combination. O d. Use utils as a measure of utility, assigning a…
6
rom California to New York, legislative bodies across the United States are considering eliminating orreducing the surcharges banks impose on non-customers, who make $14 million in withdrawals from otherbanks’ ATM machines. On average, non-customers earn a wage of $26 per hour and pay ATM fees of $3.25per transaction. It is estimated that banks would be willing to maintain services for 6 million transactionsat $1.50 per transaction, while non-customers would attempt to conduct 22 million transactions at thatprice. Estimates suggest that, for every 1 million gap between the desired and available transactions, atypical consumer will have to spend an extra minutes traveling to another machine to withdraw cash.(a) Based on this information, what would be the nonpecuniary cost of legislation that would place a$1.50 cap on the fees banks charge for non-customer transactions?(b) What would be the full economic price of this legislation?(c) Using a graph, illustrate the situation described…
3. The company that you manage has already spent $8 million on developing a new product – awebsite that combines You Tube, Twitter, and Facebook – called You Twit Face. Thedevelopment is not quite finished. It will cost an extra $2 million to finish development andcomplete the product. Assume that this $2 million amount includes the explicit costs and anyopportunity cost that the company may have. At a recent meeting, your salespeople report thatthe expected sales of your new product (if you finish) are $6 million total. If you do not finishdeveloping the product you can sell the incomplete product to another company for $2 million. What is the MC of finishing the development? __________________ What is the MB of finishing the development? __________________ Should you finish the product? Why or why not? Use the idea of “thinking at the margin” toexplain your answer. Need details explanation
Can you answer this for me please?
Graph A O Graph A O Graph B A2 O Graph C O Graph D A B2 Graph B B Which graph illustrates the effects on purchases of Corvettes, if it was suddenly "un cool" to drive one? Graph C C2 D2 Graph D D