4)   Based on estimates the data for 2 types of bridges with different lives are as follows. If the minimum attractive rate of return is 10%, determine which project is more desirable using Annual Cost Method and ROR.   Timber Bridge Steel Bridge First Cost P500k P850k Salvage Value 20k 100k Life in yrs 15 20 Annual maintenance 75k 50k

Q: 2-A company has requested price offers from two companies for the equipment they will purchase.…

A: a. Below is the calculation: Project A : = -700000 - 1500000A/P, 10%, 8 + 100000P/F, 10%,…

Q: None

A: Calculate the present value of the uniform annual benefit for the useful life of 4 years:Calculate…

Q: nd the capitalized cost at 15% interest, initial cost $200000, Annual operating cost $4000

A: Below is the given values: Interest rate = 15% Initial cost = $200000 Annual operating cost = $40000…

Q: A $1000 first year, then increasing $575 per year B C D $100 first year, then increasing $500 per…

A: We are provided with the initial and annual costs of 4 alternatives and we need to derive choice…

Q: The following annual costs are associated with three new extruder machines to be used for use in a…

A: Annual Worth (AW) Analysis is the consistent annual value of all predicted revenues (income) and…

Q: 2. Only one of three different machines is to be purchased for a certain production process. An…

A: Answer is given below

Q: Machine Initial cost, $ Annual cost, $/year Salvage value, $ Life, years O-$87,840 The estimates for…

A: present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual…

A: Annual Worth describes the annual average of the sum of costs and receipts that a project faces over…

Q: Required information The TT Racing and Performance Motor Corporation wish to evaluate two…

A: The annual worth AW of the given machine is calculated as These cash flows cost so the annual worth…

Q: The following annual costs are associated with three new machines for use in a Styrofoam cup plant.…

A: at an interest rate (i) of 10% To find the present worth, PVAF is calculated for each year. PVAF =…

Q: Dexcon Technologies, Ic., is evaluating two alternatives to produce its new plastic filament with…

A: * SOLUTION :-  (7) Given that ,

Q: A project has a $33000 first cost that returns $9000 per year over its 20 year life. It has a $6000…

A: MARR is an abbreviation for a minimum acceptable rate of return. It is the concept under engineering…

Q: Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of…

A: Given MARR is 8%. Alternative selection using Incremental rate of return analysis: First of all drop…

Q: Perform a present worth analysis of equal service alternatives with the costs shown below, if the…

A: Here we calculate the present worth by using the MRR and conclude the final decision , so…

Q: At i = 10% per year, a machine has a first cost of $8,000 and estimated operating costs and year-end…

A: In the provided case the equated annual cost method of analysis is an optimal computation to decide…

Q: A machine has a first cost of $10,000 and annual costs of $3500. There is no salvage value, and…

A: Given information: Initial cost = $10,000 Annual costs = $3500 Interest rate = 10%

Q: ! Required information A company that manufactures magnetic flow meters expects to undertake a…

A: It is the cost incurred by the investor for using the assets, Here, things are included such as…

Q: Using the cash flow shown below decide which alternative is the most economical using (a) Annual…

A: To find the annual worth and present worth of the alternatives we firstly derive present worth using…

Q: A new engineering graduate is considering two models of SUV's for commuting between Flint and Auburn…

A: Here we calculate the annual worth of the vehicle , by using the given information so the…

Q: A municipal power plant uses natural gas from an existing pipeline at an annual cost of $40,000 per…

A: Economic benefits are advantages that can be measured, like net profits, sales, respectively in form…

Q: A company is planning to expand its production operations, it has two alternatives which has the…

A: The equivalent annual worth analysis is a method in which the alternatives are compared on the basis…

Q: first cost AOC maint cost Salvage uclue Life Qu A 150 000 B 200 000 10 000 3500 in year 4 12000 5000…

A: Present worth refers to the discounted value of future cash flows .  The alternative with lesser PW…

Q: Required information A company that manufactures magnetic flow meters expects to undertake a project…

A: Equivalent Annual Cost (EUAC) is used to evaluate the cost of an investment or project on an annual…

Q: Required information A company that manufactures magnetic flow meters expects to undertake a project…

A: The annual worth ascertains the annual cash flow throughout the investment period which is…

Q: 5. For the cash flows shown below, use an annual worth comparison to determine which alternative is…

A: Given: The Rate of Interest = 12% To Find: The best alternative using annual worth comparison

Q: A company has requested price offers from two companies for the equipment they will purchase.…

A: We are going to use Present value approach to answer this question.

Q: A small manufacturing company is evaluating trucks for delivering their products. Truck A has a…

A: NPV is a method of capital budgeting that helps the investors in any company to determine if the…

Q: 5. If the MARR is 12% per year, compare the alternatives shown below on the basis of a present-worth…

A: The measure that depicts the current value of the future cash flow stream or future money sum at a…

Q: Q2) A company invests in one of three alternatives which has the cash flow as represent in the table…

A: Details Investment Amount Revenue Cost Purchasing cost Salvage Value Life Project 1 2200000 400000…

Q: A contractor can buy trucks for 950,000 each or rent them for 1500 per truck. The truck has a…

A: Solution : a) EAC = NPV/A t, r   where, A= the present value of an annuity factort = number of…

Q: 6.11 Chemco Enterprises is the manufacturer of Dry, a hydrophobic coating that will waterproof…

A: PLEASE FIND THE ANSWER BELOW.   RATE OF RETURN: A rate of return (RoR) is the net gain or loss of an…

Q: Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron…

A: Here we calculate the Present worth of two alternatives and choose the correct option so the…

Q: A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will…

A: Interest rate=8% per year compounded quarterly                        means 2% per quarter Process A…

Q: Three alternatives are considered for project execution by a construction firm. The following cash…

A: Given,  Three alternatives : Alternative A, Alternative B and Alternative C The Cashflow is given as…

Q: 1. TT Racing and Performance Motor Corporation wishes to evaluate two alternative CNC machines for…

A: The cost structure for both alternatives is presented in the table below:Machine RMachine SFirst…

Q: interest is 157 per gear. Calculale the capitalized Equivalont cost for Cap italized Cnst of a…

A: Given  Initial cost of a project = 250,000 Annual operating cost A1 = 8800 Maintenance cost every 15…

Q: A company is offered a new computer program that is supposed to provide savings in costs. The cost…

A: Answer to the Question :- Given :- Cost Savings per annum = 100,000 New Equipment Cost = 200,000…

Q: A sports wear factory has two alternative machines for producing jerseys. Costs are shown below.…

A: Given; For Machine X:- Initial Cost= P243000Salvage Value= P36450Operating Costs= P9500 per…

Q: For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10%.…

A: here we calculate the NPW of the all three Machine and choose the best machine so the calculation of…

Q: It is proposed to place a cable on an existing pole line along the shore of a lake to connect two…

A: * SOLUTION :-

Q: Compare the cost of the two types of composite materials on the basis of their capitalized costs.…

A: Annual worth for material J1 can be calculated as follows: AWMaterial…

Q: A company is considering the following two alternatives: Alt. 1 $42,500 6,000 18,500 12,000 1.5…

A: Here we calculate the Net present worth of the both alternative and choose the best alternative so…

Q: 6) Data for 2 alternatives are given below. If i = 10%, determine the cost of alternative A so that…

A: Given:

Q: In AW  OF MACHINE A  FIRST COST - 27056 ANNUAL COST  - 12.786 Salvage value - 4172 Life year - 3…

A: Here we calculate the Annual Worth of the Machine A and B by using the given details , so the…

Q: Complete the following analysis of cost alternatives and select the preferred alternative. The study…

A:

Q: 5. Compare the alternatives shown on costs using an interest rate of 15% per year. the basis of…

A: Capitalized cost refers to the cost that is assed to the cost for a fixed asset in a balance sheet…