A battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm must now adjust the pH and remove the mercury from its waste liquids. Quotations from three firms are included in the following table of costs. If the installation will last 15 years and money is worth 12%, which equipment should be purchased? Bidder Installed Cost Foxhill $70k Quicksilver $50k Almaden $90k Annual Operating Cost 5k 5k 5k Annual Income from Mercury Recovery 6.5k 2.5k 7.8k Salvage Value 10k 0 10k

A battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm must now adjust the pH and remove the mercury from its waste liquids. Quotations from three firms are included in the following table of costs. If the installation will last 15 years and money is worth 12%, which equipment should be purchased? Bidder Installed Cost Foxhill $70k Quicksilver $50k Almaden $90k Annual Operating Cost 5k 5k 5k Annual Income from Mercury Recovery 6.5k 2.5k 7.8k Salvage Value 10k 0 10k

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: A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a…

A: Requirement of pump in years at remote location=10 years ways of driven pump are:Electric motor or…

Q: A civil engineer planning for her retirement places 12% of her salary each year into a…

A: Here we calculate the future worth of his retired fund , so calculation of the following by using…

Q: Question 5 For the below cash flow diagram, determine the equivalent present worth Y for a given…

A: The problem is asking us to find the present worth (Y) of a series of future cash flows. The cash…

Q: he price of a new car is $20,000. Assume that an individual makes a down payment of 25% toward the…

A: Amortization refers to the repayment of a loan over a given time period at equal intervals. The…

Q: How much money would have to be placed in a sinking fund each year to replace machine costing…

A: A sinking fund is a financial strategy involving regular deposits into an account to accumulate a…

Q: Two 180-horsepower water pumps are being considered for installation in a farm. Financial data for…

A: Given information Pump 1 Initial cost=$5600 Efficiency=80% Annual operating cost=$475 Salvage…

Q: Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen).…

A: The annual worth is the net of the relative multitude of advantages and costs caused more than a…

Q: A man decides to run a hot dog stand as a side hobby. He makes an initial investment of $1,264 which…

A: Hi there , as you have posted multiple questions we can only answer one at a time as per our…

Q: John is evaluating his truck inventory. One three year old vehicle has a book value of $22 500.…

A: Purchase Price = 32000Current book value = 22500 Maintenance cost = 1100 per year Maintenance cost…

Q: An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual…

A: Present value refers to the cash needed now to hit a particular goal in the future. Meanwhile,…

Q: An electric utility company is going to perform energy audits on homes that are at least 30 years…

A: PV (Present Value) of an asset is the value in today’s time discounted at a given interest rate. The…

Q: Self-tightening wedge grips are designed for tensile testing applications up to 1200 pounds.The cash…

A: YEAR REVENUE($) COST($) NET CASH FLOW($) CUMULATIVE CASH FLOW($) 1 19,000 -30,000 -11,000 -11,000…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Future Value = Present Value (1 + r / 100) ^ n FV = $1000 r = 4.7% / 4 = 1.175% (As it is compounded…

Q: Question 6 Find the correct numerical value for the following factor from the compound interest…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: The price of paint increased by 18 %. As a result the quantity of paint produced increases by 27 %.…

A: Give Increase in price = 18 % Change in supply of paint = 27 %

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: To determine how many months ( t ) you will have to make payments to get the balance below $100, we…

Q: Calculate the perpetual equivalent annual cost (years 1 to ∞) of $925,000 now and $975,000, 3 years…

A: initial Cost = 925,000 3Years from initial cost = 975,000 i = 9% n = 3

Q: Hadeel borrows money in the senior year to buy a new car. The car dealership allows to defer…

A: As the monthly payments are deferred for the period of one year, therefore, we will calculate the…

Q: If I invest P50,000.00 to a corporation and we have a deal closed using simple interest with ROR…

A: Interest rate = 7 % Principal = 50000 Time = ? Future value = 50000 * 1.49 = 74500 Future amount =…

Q: Do not use chatgpt

A: Problem Description:The city of Oak Ridge is evaluating three landscaping plans (A, B, and C) for…

Question

A battery manufacturing plant has been ordered to cease discharging acidic waste liquids
containing mercury into the city sewer system. As a result, the firm must now adjust the pH and
remove the mercury from its waste liquids. Quotations from three firms are included in the
following table of costs. If the installation will last 15 years and money is worth 12%, which
equipment should be purchased?
Bidder
Installed Annual
Cost
Foxhill
$70k
Quicksilver $50k
Almaden
Operating Cost
5k
5k
$90k 5k
Annual Income from
Mercury Recovery
6.5k
2.5k
7.8k
Salvage
Value
10k
0
10k

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define uniform series of cash flows

VIEW

Step 2: Calculation of present value of Foxhill

VIEW

Step 3: Calculation of present of quicksilver and Almaden

VIEW

Step 4: Working note,

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 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

The annual income from an apartment complex is $21,128. The annual expense is estimated to be $3,272. The apartment complex could be sold for $108,281 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if you were to buy it now?
The first panelist, Stephen Stanley, suggests the economy may be over‑heating, while the second, Bob Browne, maintains that the current rate of growth is the highest the economy will see for the foreseeable future. Indicate where in the business cycle Stanley and Browne conclude the economy is currently by placing the points SS (Stanley) and BB (Browne) on the graph. Real GDPTimeSSBB
Determine the equivalent value of x from the cash flow indicated in the diagram on the left side. 2 G₁ 7 59 10 i% X
You decide to purchase a tractor for a net cost of $350,000. You finance thistractor for 5 years at 5.0% interest. You make one payment per year using equalprincipal payments. Calculate your annual payments and amortization (payoffschedule). Is the total cost of this loan more or less than if you had used the equaltotal payments formula? Explain.
4. Maintenance costs for a small bridge with an expected 60-year life are estimated to be $1,000 each year for the first five years, followed by a $10,000 expenditure in the 15th year a $10,000 expenditure in year thirty. If i = 10% per year, what is the equivalent uniform annual cost over the entire 60-year-period?
! Required information The annual revenues associated with several large apartment complexes are $225, $225, $275, $375, $75, and $125 for years 0, 1, 2, 3, 4, and 5, respectively. Determine the net cash flow and whether each cash flow series is conventional or nonconventional. The costs for years 0, 1, 2, 3, 4, and 5, respectively, are provided in the problems. When the cash flow is zero, assume it to be negative. Year 0 Cost, $ -1500 1 -450 The cash flow is conventional The Cumulative cash flow is 0 1 Year Cumulative CF, $ 2 -300 2 3 -400 3 4 -125 4 5 -400 5
Please handwriten solution
Subject : Engineering Economics Please write handwritten Answer
Are the following cash flow diagrams economically equivalent if the interest rate is 15% per year? 0 7M 1 8M 2 ΕΟΥ 6M 3 5M 4 H 0 7M 1 7M 2 ΕΟΥ The left-hand diagram's discounted value at the EOY 0 is $[ M. (Round to three decimal places.) 7M 3 7M 4
A company is considering establishing a new machine to automate a meatpacking process. The machine will save $59,350 in labor annually. The machine can be purchased for $271,296 today and will be used for 8 years. It has a salvage value of $11,071 at the end of its useful life. The new machine will require an annual maintenance cost of $9,594. The corporation has a minimum rate of return of 9.4%. Calculate the NPW.
Hand written solutions are strictly prohibited.