Engineering Econ HW5 Q2 2. An elevator company has redesigned their product to be 50% more energy efficient thanhydraulic designs. Two designs are being considered for implementation in a new building.Given an interest rate of 20%, which bid should be accepted? Use PW for your analysis.AlternativeInstalled CostAnnual CostSalvage ValueLife, in yearsA$55,000B$64,000$2,700$2,850$3,000$4,5001015

Given Data: Alternative A:Initial Cost: $55,000Annual Cost: $2,700Salvage Value: $3,000Life: 10…

Answered: 2. An elevator company has redesigned…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You purchased a winning ticket for a $3 million lottery which pays $300,000immediately and the rest in 9 annual installments. J.G. Wentworth called you and offered you $2 million in cash. Would you accept the offer if the interestrate is 6%?
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4:09 470 3 of 3 Assignment 2-2022.pdf 420 ct the cash flow diagram for A mechanical device will cost $20,000 when purchased. Maintenance will cost $1000 per year. The device will generate revenues of $5000 per year for 5 years. The salvage value is $7000. 8. Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its worldwide operations. Carla Ramos, a lead engineer for Mexico and Central American operations, plans expenditures of $1 million now and each of the 2 next 4 years just for the improvement of field-based pressure- release valves. Construct the cash flow diagram and find the equivalent value of these expenditures at the end of year 4, using a cost of capital estimate for safety-related funds of 12% per year. 9. An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 $2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 =…
You have decided to endow your favorite university with a scholarship.It is expected to cost $15,000 per year to attend the university intoperpetuity. You expect to give the university the endowment in 5 yearsand will accumulate it by making equal annual (end-of-year) depositsinto an account.The rate of interest is expected to be 8% for all future time periods.a) How large must the endowment be?b) How much must you deposit at the end of each of the next 5 yearsto accumulate the required amount?
Solve it correctly and details. Not use excel
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Hinson’s Homegrown Farms needs a new irrigation system. System one will cost $145,000, have annual maintenance costs of $10,000, and need an overhaul at the end of year six costing $30,000. System two will have first-year maintenance costs of $5000 with increases of $500 each year thereafter. System two would not require an overhaul. Both systems will have no salvage value after 12 years. If Hinson’s cost of capital is 4%, using annual worth analysis determine the maximum Hinson’s should be willing to pay for system two.
Determine which option, if any, should be chosen based on net present worth using a 8% interest rate. Use Repeatability Method. Alternative A First Cost (Investment Cost) $ 5,000 $10,200 Uniform Annual Benefit $ 1,100 $2,300 Useful Life 5 years 10 years a. The Net Present Worth of Alternative A is = $ Blank 1 b. The Net Present Worth of Alternative B is = $ Blank 2 c. Choose Alternative (Type only A or B) = Blank 3
Solve without using excel
Show cashflow diagram and full solution.

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