4. The DICT has just installed new software for their project management. The director wants to know the total equivalent cost of all future costs incurred to purchase the software system. If the new system will be used for the indefinite future, find the ca pitalized cost. The system has an installed cost of $150,000 and has an additional cost of $50,000 after 10 years. The annual software maintenance contract cost is $5000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that i=5% per year for their funds.

4. The DICT has just installed new software for their project management. The director wants to know the total equivalent cost of all future costs incurred to purchase the software system. If the new system will be used for the indefinite future, find the ca pitalized cost. The system has an installed cost of $150,000 and has an additional cost of $50,000 after 10 years. The annual software maintenance contract cost is $5000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that i=5% per year for their funds.

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

Required information Akash Uni-Safe in Chennai, India, makes Terminator fire extinguishers. The company needs replacement equipment to form the neck at the top of each extinguisher during production. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years D E -70,000 -15,000 10,000 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. -60,000 -12,000 8,000 Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors. The future worth of machine D is $- 8008 and the future worth of machine E is $- 20280 The machine selected based on the future worth analysis is
When performing engineering economic analysis, why should the appropriate price indices be selected?
Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O A
The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each How many uint must be sold to realize profit of brirr 4000?
whats the range of profitability
Question 3 low-cost range for multiple alternatives. variable location fixed cost cost/unit elm 125 .01 ferry 50 .03 getty 75 .02 if expected output is 4000, the best alternative if quantity is 7000 is location
SUBJECT: Engineering Economics Number 3
Adam leases a truck with an upfront payment 3100 and monthly payments of 116. Assuming there is no additional charges , what I will be the total cost of a 3 year lease?
Engineering economics