Engineering Econ HW6 Q2 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 $200,000 with annual costs of$50,000 and savings of $90,000 in the first year. Savings are projected to increase by $3000annually after Year 1. The salvage value 10 years from now is projected to be $30,000.a. What rate of return will the firm make on this investment?b. If the firm's MARR is 20%, what would you recommend?

Problem Recap:Initial cost: $200,000 (Year 0)Annual operating cost: $50,000First-year savings:…

Answered: 2. Switching to powder coating…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm’s production process. The initial cost is $200,000 with annual costs of $50,000 and savings of $90,000 in the first year. Savings are projected to increase by $3000 annually after Year 1. The salvage value 10 years from now is projected to be $30,000. What rate of return will the firm make on this investment? can you please do it in excel and show me how to apply equation in excel. Prob 7-19 Year Costs Benefits +Salv Net 0 1 2 3 4 5 6 7 8 9 10
ENGINEERING ECONOMICS provides complete solution and cash flow diagram
When can we use the Cash-Flow Approach?
2. The cost for manufacturing a component used in intelligent interface converters was $23,000 the first year. There is a 30% chance the cost will increase by 2% per year, a 40% chance the cost will increase by 3% per year, and a 30% chance the cost will increase by 4% per year over the next 5 years. Calculate the expected value of the present worth at an interest rate of 10% per year.

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