9-3. Analyze replacing a commercial oven with $800annual maintenance and a $3,000 salvage value with anew one for $15,000 and $300 annual maintenance. Thecompany's MARR is 12% per year.

CONCEPT:Replacement analysis evaluates whether replacing existing equipment with new equipment is…

Answered: 9-3. Analyze replacing a 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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For th below two machines and based on AW analysis which machine we should select? MARR=10% Machine A Machine B 26612 12417 4135 Life, years 3 Answer the below question: B- the AW for machine B= First cost, $ Annual cost, $/year Salvage value, $ 140454 7170 infinite
7
If the MARR=10%, compute the value of X that makes the alternatives equally desirable. Do not use spreadsheets. Alternatives Machine A Machine B First cost $12,000 $20,000 Annual Operating cost $1,400/year X Salvage value $2,000 $3,000 Life 4 years 8 years
A road resurfacing project costs $250,000, lasts 5 years and saves $150,000 annually in patching costs. MARR is 12%. Determine the annual worth (in $)
Breakeven Example 8.2 • MARR is 12% per year. Select the more economical vendor bid. -8,000 - 13.000 Initial cost. S -3,500 -1.600 Annual costs, S per year Salvage value. $ Life. vears 2,000 10
• Smalltown, PA currently has a $38,000/year contract with a private company to transport students to their school and back. Smalltown can buy a bus for $40,000 that will be adequate for the next 5 years. Operating and maintenance costs are estimated to be $25,000 per year. At the end of 5 years, the bus will have an estimated salvage value of $5,000. Their MARR is 10%/year. а. What is the Excel or closed form equation (along with the value of relevant parameters) to determine this investment's internal rate of return?
Given the following two alternatives and using the repeatability assumption and MARR=15%/year, the equation for computing the present worth of vendor B is Vendor A First Cost, $ -15,000 Annual cost, $ per year -3500 Salvage Value, $ 1000 Life, years 3 Vendor B -18000 -3100 2000 4 OPW=18000-18000(P/F,15%, 4)-18000(P/F,15%, 8)+2000(P/F, 15%, 4)+2000(P/F, 15%, 8) +2000 (P/F, 15%, 12)-3100(P/A, 15%, 12) PW=18000-18000(P/F, 15%, 12)+2000(P/F, 15%, 4)+2000 (P/F, 15%, 8)+2000(P/F, 15%, 12)-3100(P/A, 15%, 12) O PW=-18000-18000(P/F,15%, 4) - 18000(P/F,15%, 8) +2000(P/F, 15%, 4)+2000(P/F, 15%, 8) +2000 (P/F, 15%, 12)-3100(P/A, 15%, 12) O PW=-18000(P/F,15%, 4) -18000(P/F,15%, 8) +2000(P/F, 15%, 4)+2000(P/F, 15%, 8) +2000(P/F, 15%, 12)-3100(P/A, 15%, 12)
A manager is considering installation of one of the following two machines in his factory 24 Panther $30,000 Cheeler More Info 1 $90,000 $20,000 $30,000 4 6 None None Initial Cost Annual Costs Service life (years) Salvage value Since the machines have different service lives, his economic analysis will assume repeatability and use an analysis period of 12 years. Given a MARR of 10% per year, calculate the following two parameters Click the icon to view the interest and annuity table for discrete compounding when /-10% per month. The EUAC of the Cheeter over the analysis period is (select the closest value) OA. $9,335 OB. $50,665 OC. $43,209 OD. $101,330 OE. $56,417 The PW of the Cheeter over the analysis period is (select the closest value). OA. $441,318 OB. $384,408 OC. $345,216 The of " wie OA BI O . Ос OR H " 0 0 " 15 ожи кли Derm TOW 5 6 B 9 0 T Y U 1 O P
Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $20,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. Part a What is the future worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is £10.
An electronics firm is planning to manufacture a new handheld gaming device for the preteen market. The data have been estimated for the product. Assuming a negligible market (salvage) value for the equipment at the end of five years, determine the breakeven annual sales volume for this product.
5. The physical life is always greater than all the other "life" factors under replacement analysis. 6. If breakeven analysis is conducted with PW analysis for different MEAS, it doesn't guarantee that the fastest alternative to reach its breakeven point has also the highest equivalent worth.
Please explain in detail

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9-3. Analyze replacing a commercial oven with $800 annual maintenance and a $3,000 salvage value with a new one for $15,000 and $300 annual maintenance. The company's MARR is 12% per year.