9-4. A vehicle costs $30,000 and incurs maintenance costs.increasing by $500 annually, starting at $1,000 in year one.When is it economical to replace it, assuming no salvagevalue? Use a MARR = 8% per year.

Answered: 9-4. A vehicle costs $30,000 and incurs…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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20 years later, Alex is has $1,000,000 in his investment account. He plans to spend $200,000 each year from his account. How many years would it take before his account is depleted? Use i = 8% per year.
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An old machine cost P48,000.00 a year to maintain. What expenditures for anew machine is justified if no maintenance will be acquired for the first 3 years,P12,000.00 per year for the next 7 years, and P48,000 a year thereafter?Assume money to cost 4% compounded annually and no other costs to beconsidered.
Which car has a lower EUAC if the owner can earn 5% in his best investment?Initial Cost: Corolla ($19200), Prius ($25500)Annual maintenance: Corolla ($1000), Prius ($1500)Annual gas and oil (increasing 15% yearly): Corolla ($2500), Prius ($1200)Salvage value (Year 8): Corolla ($8000), Prius ($10000)
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
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(2) If the initial investment on the equipment is 25000 and it will have a salvage value of 5000 at the end of 5 years. It will save 8000 per year for the study period. Is it worthwhile to install the equipment? Justify it by using Future Worth (FW) formulation when MARR is 20%
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9-4. A vehicle costs $30,000 and incurs maintenance costs. increasing by $500 annually, starting at $1,000 in year one. When is it economical to replace it, assuming no salvage value? Use a MARR = 8% per year.