4. Ashley Furniture needs a new grinder. Compute the present worth for these mutuallyexclusive alternatives. i= 6%. Ashley uses a 10-year planning horizon.AlternativeInitial CostAnnual CostSalvage ValueLifeA$4500$300$5005 yearsB$5500$400$010 years

The objective of this question is to calculate the present worth of two mutually exclusive…

Answered: 4. Ashley Furniture needs a new…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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8- The life of a project is 10 years. An equipment is needed for this project. Two alternatives are available. Equipment A has an initial cost of $5000.00, an annual maintenance cost of $300.00, and a salvage value of $800.00 after 5 years. Equipment B has an initial cost of $7000.00, an annual maintenance cost of $400.00, lasts for 10 years and has no salvage value. If the interest rate is 6%: a) Equipment A should be purchased. b) Equipment B should be purchased. c) No equipment should be purchased. d) There is no difference in choosing between A or B.
Problem 7 A firm is considering the following three alternatives, as well as a fourth choice: do nothing. Each alternative has a 7-year useful life. The firm's minimum attractive rate of return is 9½ %. A Alternative Initial cost $100,000 Uniform annual net income 24,036 Computed rate of return 15.00% B $130,000 30,198 13.87% с $330,000 69,936 10.96% Using incremental rate of return comparisons, determine which alternative should be selected.
Q#2 Graph the EUAC or EUAB of the following two mutually exclusive alternatives. Use interest rate from 0% to 100% Initial cost Annual Cost HP Dell 6800 16,999 1500 1800 Annual Benefits 4000 5500 Salvage Value Useful Life in years 1000 35000 4 8
Solve using excel. Show your steps
Mr Dela Cruz is going to buy a new machine for manufacturing its product: Machine A has a first cost of P50,000; annual maintenance P6,000; life 12 years and salvage value of P2,000. Machine B has a first cost of P140,000; annual maintenance P2,500, life 36 years and salvage value P10,000. Money is worth 9% .Compute the annual cost of machine B choices: A. P551 B. P2,500 C. P15,651 D. P7,550 COMPELETE SOLUTION
9. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARRis 15 percent, whatis the annual worth of this project?
Please answer these two question with proper solution and write it on a paper Thank you.
can you answer this? thank you
#4
A new bridge project is being evaluated at i = 20%. Recommend an alternative based on the capitalized cost for each. AnnualO&M Life(years) $250,000 $500,000 Construction Cost Concrete $50million Steel $40million Solution: 1. Here 2. CC concrete 50 3. CC steel 4. Choose capitalized cost (CC). million dollars; million dollars; 70 50
7) Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the present worth of this project?
2. Draw the cash flow diagram for the following elements. Economic Life 10 years Php 20,000,000 Php 1,000,000 Php 500,000 Additional Income at Year 5 Php 50,000 Php 80,000 Php 100,000 First Cost Annual Operating Cost Annual Income Additional Cost at Year 8 Salvage Value

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4. Ashley Furniture needs a new grinder. Compute the present worth for these mutually exclusive alternatives. i= 6%. Ashley uses a 10-year planning horizon. Alternative Initial Cost Annual Cost Salvage Value Life A $4500 $300 $500 5 years B $5500 $400 $0 10 years