the basis of their capitalized5. Compare the alternativescosts using an interest rate of 15% per year.shownonAlternative MAlternative NFirst cost, $-150,000- 800,000Annual operatingcost, $ per year- 50,000- 12,000Salvage value, $Life, years8,0001,000,0005

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

5. Compare the alternatives shown on costs using an interest rate of 15% per year. the basis of their capitalized Alternative M Alternative N First cost, $ - 150,000 -800,000 - 12,000 Annual operating cost, $ per year - 50,000 Salvage value, $ Life, years 8,000 1,000,000

5. Compare the alternatives shown on costs using an interest rate of 15% per year. the basis of their capitalized Alternative M Alternative N First cost, $ - 150,000 -800,000 - 12,000 Annual operating cost, $ per year - 50,000 Salvage value, $ Life, years 8,000 1,000,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

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

A: Present worth, also known as present value, is the current monetary value of future cash flows or…

Q: 12% per year. For the cash flows shown, use an annual worth comparison and an interest rate of First…

A: The annual worth (AW) value for an alternative will be inclusive of the two components: capital…

Q: None

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

Q: If you are asked to perform an incremental ROR analysis for the two robots listed below, how would…

A: The analysis of financial return where there are two opportunities for investment that involve…

Q: The initial investment costs and the "annual revenues less expenses" of three investment…

A: business and for engineering economics in both industrial engineering and civil engineering…

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: The engineering department have appointed you on a task purchasing new forklift to transport sheet…

A: Given Information: Item Forklift A Forklift B First Cost , RM 90,000…

Q: Following cash flows for alternatives X and Y at an interest rate of 10% per year. Initial cost, $…

A: To calculate the present worth (PW) of each machine, we need to find the net present value (NPV) of…

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: Three mutually exclusive design alternatives are being considered. The estimated cash flows for each…

A: Given information Alternative A Alternative B Alternative C Capital Investment (First Cost)…

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: b) National Homebuilders, Inc., plans to purchase new cut-and-finish equipment. The details of the 2…

A: Annual worth formula: Equal payment series capital recovery factor (A/P,i,n):…

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

Q: If are you and to Company decide More than 2 alternatives of is frying investment Worth while,…

A: Present value refers to the value of a certain sum of money in the future or cash flows in the…

Q: National homebuilders Inc plans to purchase new rain gutter forming equipment. Two manufacturers…

A: The term "MARR" stands for "Minimum Acceptable Rate of Return." It is also commonly referred to as…

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

A: The objective of this question is to determine which machine, R or S, is a better investment for TT…

Q: Use inual Cost Analysis to determine whether Alternative A or B should be chosen. The analysis…

A: To determine the better alternative, we need to compare their Equivalent Annual Costs (EAC). Let's…

Q: Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of…

A: Present worth helps to recognize the current value of money received or paid in the future,…

Q: Compare the alternatives below using AW and i = 10% per year C D -350,000 -35,000 35,000 8 First…

A: Annual Worth gives the average value of a certain alternative’s cost or benefit incurred over the…

Q: 3. PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that…

A: Present Worth (PW) is the sum of money or the value of a certain asset in the future whose value has…

Q: Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year.…

A: A cost associated with the purchase of a building, piece of equipment, or other fixed asset is…

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

A: Initial Investment = 13,500 Annual Cost = 450 Salvage Value = 1,700

Q: For aternatives shown in the table below and on the basis of their capitalized.costs. CC and an…

A: Here we calculate the capitalized cost of the both machines by using the given information , so the…

Q: A Construction company may buy a new truck with a 10-year life. Interest is 5%. The cash flows for…

A: NPW is the abbreviation used for Net present worth or net benefits after discounting the cash flows…

Q: Give correct explanation and answer

A: Dear student, kindly check the answer in the explanation box below.Explanation:Dear student, below…

Q: A cost analysis is to be made to determine what, if anything, should be done in a situation offering…

A: The alternative providing the highest net annual worth and the highest rate of return is to be…

Q: (engineering economic) Four alternatives with cash flows (million rupiah) as follows: Determine the…

A: A rate of return (RoR) is the net gain or loss of an investment over a specified time period…

Q: Using the PW analysis on the basis of their capitalized cost to compare the Mutually Exclusive (ME)…

A: For Machine B: Initial cost (C) = 8,000 Operating Cost (OC) = 2500 Salvage (S) = 1000 Useful life =…

Q: None

A: Approach to solving the question:To calculate the present worth (PW) for each machine properly, we…

Q: An NGO is considering building a school for children in a community with 200 children. Assume that…

A: Social value per child going school = 2000 Total Additional social value with construction of new…

Q: Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of…

A: Present worth helps to assess the current value of money received or paid in the future, considering…

Question

the basis of their capitalized
5. Compare the alternatives
costs using an interest rate of 15% per year.
shown
on
Alternative M
Alternative N
First cost, $
-150,000
- 800,000
Annual operating
cost, $ per year
- 50,000
- 12,000
Salvage value, $
Life, years
8,000
1,000,000
5

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% Machine A Machine B Machine C First cost, $ 15,828 30000 10000 Annual cost, $/year Salvage value, s Life, years 8,753 6,000 4,000 4,000 5,000 1,000 Answer the below questions: A- AW for machine A= QUESTION 4 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% Machine A Machine B Machine C First cost, $ 15000 21,344 10000 Annual cost, $/year 8,314 6,000 4,000 Salvage value, $ Life, years 4,000 5,000 1,000 Answer the below questions: B- AW for machine B=
A dyeing and finishing plant is interested in acquiring a dyeing machine for the production of a new product. Three alternatives are being considered assummarized below. Which alternative should be recommended if the plant’sMARR (hurdle rate) is 15% per year using (a) the IRR method and (b) the annual worth method?
Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 16% per year. Platform First cost, $ million Y Z -300 -450 -510 M&O, $ million per year -320 -290 -230 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20 Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- 2298.4 worth of platform Z is $- 1944.14 million, the present worth of platform Y is $- 2262.15 million, and the present million. The platform selected based on the present worth is platform Z
What Term goes with what Concept
There are 5 national projects with infinite life time listed below. Select the best two projects if MARR is 8% per year using rate of return analysis? Project First Cost A 2000 B 1000 C 1500 D 7000 E 5000 ORDER: Annual income 200 130 150 600 260 Calculate i* for each alternative
Required information The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ -254,000 -40,000 The better alternative is machine S 3 20,400 Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $- S -360,500 -50,000 5 19,600 47694, and the annual worth of machine S is $- 10970
Q.1 Find the capitalised cost of an investment at 15% interest rate. The investment has initial cost $200000 and operating annual cost is $40000 for life time.
You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below. Using an AW analysis, determine which should be selected at i = 15% per year. Machine First cost, $ Annual cost, $/year Salvage value, $ Life, years C -40,000 -10,000 12,000 3 D -65,000 -12,000 25,000