A 3-year old truck is being considered for early replacement. Its Current market value is $25,000.Estimated future market values and annual operating costs for the next 5 years are given in thefollowing table. What is the ESL if i=10%?Year MV, $ AOC, $1 10,000-5,0002 8,000 -6,50036000 -8,00042000 -9,5000-12,5005O 5 yearsO 4 yearsO 3 years2 years

ESL stands for Equivalent Service Life. It represents the number of years a truck should be kept in…

Answered: A 3-year old truck is being considered…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If Dr. Smith buys a machine for $5,000 as is able to improve the earnings of her practice by $2,000 a year for five years, and then can sell the machine for $600 as scrap. What is the IRR?
Pls help ASAP.
9
Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine last 4 years. First cost: $48,000 Semiannual Operating cost: $7.000 Semiannual incomes: $14,000 Salvage value : $10,000 a. EAW=$21.745 b. EAW=$2,957 C. EAW=$175 d. EAW=$1,958
Below are the costs and revenues of 2 alternatives for a machine. When the discount rate is 26.5% per year, determine which alternative is economically viable using the annual value method. 1. Machine 2. Machine Initial investment expense $1,400,000 $1,170,000 Scrap price $280,000 $175,500 First year value of annual operating expense $60,000 $28,000 Annual increase rate of operating expenses %23 %26 Annual revenue $720,000 $630,000 Annual revenue change 8 years fixed, then descending linearly 7 years fixed, then geometricdecreasing Annual reduction rate of revenues or quantity $3,500 -%6 Economic Life 20 years 15 years Below are the costs and revenues of 2 alternatives for a machine. When the discount rate is26.5%per year, determine which alternative is economically viable using the annual value
As a Project Engineering had been tasked to make an analysis and to recommend to yourcompany on the economic justification on option to purchase a new or 3-year old used truck tobe used for the company's project construction activities as well as providing some rentalbusiness for three years. As the truck is not used for the whole time, 5-days a month it is beingrented out. The new truck having better fuel efficiency and lower maintenance cost. Based onyour data gathering, you have this information derived for the analysis.(Refer to attached image) b) Based on Payback Period evaluation, which unit will you recommend to your management to be purchased and why?
A machine costs P150,00O and will have a scrap value of P10000 when retired at the end of 15 years. If money is worth 4%, find the annual investment and the capitalized cost of the machine.
A company is looking to install a new automated system to increase its revenues by $24,000 per year over the next five years. Annual expanses of the system are expected to be $3,400. The system will cost $80,000 and have $5,000 salvage value at the end of the fifth year. If the MARR is 10%, what is the Annual Worth (AW). Select one: O a. $215 O b. $115 O C. $315 O d. $415
10.7 Determine the economic life of an $800 laptop computer. Your personal interest rate is 10% per year. Annual expenses and year-end resale values are expected to be the following: Year 1 Year 2 Year 3 Software upgrades and maintenance $150 $200 $300 Resale value at end of year $600 $450 $200
What is the total lifetime cost of the system given the following information? The initial cost of the system is $4800. The system has annual maintenance costs of $175. On the fourth year, an overhaul cost of $350 is scheduled. The system is expected to last for 5 years. The discount rate is 8%. Answer to the nearest dollar $________.00.
Pls solve it in excel also please provide the equation you used to get to the values.
(hand written)please do it in 30 minutes please urgently... I'll give you up thumb

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