9-15. A small high-speed commercial centrifuge has thefollowing net cash flows and abandonment values over itsuseful life (Table P9-15, p. 454).The firm's MARR is 12% per year. Determine theoptimal time for the centrifuge to be abandoned if itscurrent MV is $9,500 and it won't be used for more thanfive years. (9.8) TABLE P9-15 Cash Flows and Abandonment Values forProblem 9-15End of Year12345Annual revenues less expenses$2,000 $2,000 $2,000 $2,000 $2,000Abandonment value of machine" $6,200 $5,200 $4,000 $2,200a Estimated MV.

Formula for Present Worth (PW):The calculations for each year:Conclusion:Year 1: $7,321.43Year 2:…

Answered: 9-15. A small high-speed commercial…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Current Attempt in Progress Mandy is considering investing in an opportunity that would require an upfront cost of $ 520 but would pay $ 150 per year for each of the next 6 years. If Mandy chooses to invest in this opportunity, what would be the IRR? Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.5. Should Mandy invest in this opportunity if her personal MARR is 20%?
You are considering buying a 10-year-old machine for $280, or a new fuel-efficient machine for$600. The new machine will save you $5 per month on your fuel bill, and you will be able to sellit for $300 in 10 years. The used machine will have no resale value at that time. Assume theinterest rate is 3% per year. According to the information given, which machine will you buy?
Q4. [ remaining useful life) are shown in the table below. Assume the MARR is 10% per year. Based on this information, - ] The present worth of the cash flows through year k, PWk for a defender (3- year What is the economic life and the related minimum equivalent uniform annual cost, EUAC, for the defender? a. b. Compute marginal cost, show your calculations and fill the table below. Year(k) Total (marginal) cost PWk EUAC -$14,020 -$28,100 3 -$43,075
1/ Q4. [. The present worth of the cash flows through year k, PWk for a defender (3-year remaining useful life) are shown in the table below. Assume the MARR is 10% per year. Based on this information, What is the economic life and the related minimum equivalent uniform annual cost, EUAC, for the defender? b. Compute marginal cost, show your calculations and fill the table below. Year(k) PWK a. 1 2 3 -$14,020 -$28,100 -$43,075 Total (marginal) cost EUAC
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You are considering an apartment building project that requires an investment of $15, 000, 000. This building has 30 units and you expect the maintenance cost for the apartment building to be $400, 000 the first year which will continue to increase by $50, 000 every year in sub-sequent years. The cost to hire a manager for the building is estimated to be $100, 000 per year. After 6 years of operation, the apartment building can be sold for $16, 000, 000. If the monthly rent per apartment unit is $5, 000, what would be the rate of return on this investment? Assume that the building will remain fully occupied during its six years of operation. In your analysis, you are expected to: (i) Use Excel to display the cash flow; (ii) Draw a Cash Flow Diagram; (iii) Use Excel to compute the internal rate of return of the CFD. use excel
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An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital investment for the plant is $700 million, spread evenly over two years. The operating life of the plant is expected to be 15 years. Additionally, the plant will operate at full capacity 77% of the time (downtime is 23% of any given year). The MARR is 7% per year. a. If this plant will make a profit of three cents per kilowatt-hour of electricity sold to the power grid, what is the simple payback period of the plant?.
A project is estimated to cost P120k, last 8 years & have a salvage value of P20k. The annual gross income is expected to average P50k & annual expenses is P5k. If capital is earning 10% determine if this is a desirable investment using annual cost method, what is the net cost. a). P24,255.598 b). P42,525.598 c). P42,255.598 d). P24,525.598
An integrated, combined cycle power plant produces 280 MW of electricity by gasifying coal. The capital investment for the plant is $690 million, spread evenly over two years. The operating life of the plant is expected to be 17 years. Additionally, the plant will operate at full capacity 78% of the time (downtime is 22% of any given year). The MARR is 5% per year. a. If this plant will make a profit of three cents per kilowatt-hour of electricity sold to the power grid, what is the simple payback period of the plant? Is it a low-risk venture? b. What is the IRR for the plant? Is it profitable? O

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