13-8 A S40,000 machine will be purchased by a company A whose interest rate is 12%. The installation cost is $10K, and removal costs are insignificant. What is its economic life if its salvage values and O&M costs are as follows? (a) Year 1 2 3 5-10 4 $25K S20K $15K $10K $5K O&M $4K $7.5K $11K $14.5K S+1.5K/year (b) For lives of 6 years or more, an overhaul costing

13-8 A S40,000 machine will be purchased by a company A whose interest rate is 12%. The installation cost is $10K, and removal costs are insignificant. What is its economic life if its salvage values and O&M costs are as follows? (a) Year 1 2 3 5-10 4 $25K S20K $15K $10K $5K O&M $4K $7.5K $11K $14.5K S+1.5K/year (b) For lives of 6 years or more, an overhaul costing

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

6-4 A An electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and main- tain in the first year and $3000 in each later year. At the end of 4 years, the firm changed their inspec- tion procedure, eliminating the need for the device. The purchasing agent was very fortunate to sell the inspection device for $60,000, the original price. Compute the equivalent uniform annual cost during the 4 years the device was used. Assume interest at 10% per year.
At a 10% interest rate, which machine should be installed? Use an annual cash flow analysis. Machine A Machine B Initial Cost $10,00O $20,000 Useful life, in years 4 10 End of Useful Life Salvage Value $10,000 $10,000 Annual Maintenance $1,000 0
Plz what is correct option? And I humble request use. Maths tools plZ
A pump has an initial cost of $20,000 and an annual maintenance cost of $550. The life of the pump is 15 years, and its salvage value is $4500. Assuming an annual effective interest rate of 4%, the equivalent uniform annual cost of the pump is most nearly? a. $1020 b. $1470 c. $2120 d. $2570
engg economy pls answer a, b, and c
Typed plz and asap thanks
9-83 Assume a cost improvement project has only a first cost of $100,000 and a monthly net savings, M. There is no salvage value. Graph the project's IRR for payback periods from 6 months to the project's life of N years. The firm accepts projects with a 2- year payback period or a 20% IRR. When are these standards consistent and when are they not? (a) Assume that N = 3 years. (b) Assume that N = 5 years. (c) Assume that N = 10 10 years. (d) What recommendation do you have for the firm about its project acceptance criteria?
1
Economics
Two machines are being considered for purchase. If the MARR (for this problem, also the minimum required interest rate) is 10%, which machine should be bought?
An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life? 13-1 P Maint A Maint G (A/G, 10%, n) Salvage PV of S n EUAC-P EUAC-M EUAC-S EUAC Minimum? 1050000 235000 75000 225000 1 1050000 235000 75000 225000 2 1050000 235000 75000 225000 3 1050000 235000 75000 225000 4 1050000 235000 75000 225000 5 1050000 235000 75000 225000 6 1050000 235000 75000 225000 7 1050000 235000 75000 225000 8 Can you please teach how to calculate these number I don't know how to solve in excel I…
M2