A chemical reactor, which will contain corrosive liquids, has been designed.The reactor may be made of mild steel or stainless steel. The initial cost, including installation, of a mild steel reactor is expected to be P 72,000 and would last 5 years. Stainless steel is more resistant to the corrosive action of the liquids, but is more expensive and will cost P 120,000. Assuming that both types of reactors will have no salvage or scrap value at the end of their useful lives and could be replaced at the same costs as before, and if money is worth 12% compounded annually, what should the useful life of the stainless reactor be so that the capitalized costs are equal?

A firm is considering the “make vs. buy” question for a subcomponent. If the part is made in-house, the production data would be: first cost = $350, 000; annual costs for operation = $45, 000; salvage value = $15, 000; project life = 5 years; interest = 10%; and material cost per unit = $8.50. If annual production is 10,000 units, the maximum amount that the firm should be willing to pay to an outside vendor for the subcomponent is nearest? (a) $10 per unit (b) $16 per unit (c) $22 per unit (d) $28 per unit?

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.

Pls answer it manually and show a complete solution

! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $40,000, an annual operating cost (AOC) of $12,000, and a service life of 2 years. Method B will cost $70,000 to buy and will have an AOC of $6,000 over its 4-year service life. Method C costs $125,000 initially with an AOC of $3,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 7% of its first cost. Perform a present worth analysis to select the method at /= 12% per year. The present worth of method A is $ The present worth of method B is $ The present worth of method C is $ ✓is selected. Method C

! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $41,000, an annual operating cost (AOC) of $13,000, and a service life of 2 years. Method B will cost $82,000 to buy and will have an AOC of $4,500 over its 4-year service life. Method C costs $117,000 initially with an AOC of $4,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 9% of its first cost. Perform a future worth analysis to select the method at i = 8% per year. The future worth of method A is $ 65,832.64 The future worth of method B is $ 98,183.44 The future worth of method C is $ 157,622.43 > Method с Return to question is selected.

A company in Batangas is planning to buy a new gantry crane that has a capacity of 50 tons. In the market, there are four available cranes offered by different well-known companies. The first equipment is a portable/mobile gantry crane with a cost of P2,400,000 and an installation cost of P50,000. During its life of 5 years, the cost of power and labor is P130,000 and P280,000 respectively. Maintenance should be followed as well and must be done on its scheduled program. The cost of maintenance per year is P116,000. The second equipment is a double girder gantry crane with a cost of P3,000,000 and an installation cost of P40,000. During its life of 5 years. the cost of power and labor is P136,000 and P190,000 respectively. The cost of maintenance per year is P93.000. The third equipment is an electric trolley gantry crane with a cost of P4.960,000 and an installation cost of P55,000. During its life of 5 years, the cost of power and labor is P240,000 and P130,000 respectively. The cost…

A company in Batangas is planning to buy a new gantry crane that has a capacity of 50 tons. In the market, there are four available cranes offered by different well-known companies. The first equipment is a portable/mobile gantry crane with a cost of P2,400,000 and an installation cost of P50,000. During its life of 5 years, the cost of power and labor is P130,000 and P280,000 respectively. Maintenance should be followed as well and must be done on its scheduled program. The cost of maintenance per year is P116,000. The second equipment is a double girder gantry crane with a cost of P3,000,000 and an installation cost of P40,000. During its life of 5 years. the cost of power and labor is P136,000 and P190,000 respectively. The cost of maintenance per year is P93.000. The third equipment is an electric trolley gantry crane with a cost of P4.960,000 and an installation cost of P55,000. During its life of 5 years, the cost of power and labor is P240,000 and P130,000 respectively. The cost…

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%?

A contractor has an excavator requiring repairs within her fleet of cquipment for executing projects. She is offered $6,000 for the equipment by another contractor but refuses to sell. Other financial details of the excavator are as follows: Repair cost of $4,000 Useful life of 5 years At the end of year 1, the operation and maintenance cost is pegged at $2.000. This value increases by $1,000, S1,200, S1,400, and $1,600 for the following years. At the end of year 1, the salvage value is pegged at $6,000. This value decreases by 25% for the following years. The minimum acceptable rate of return (MARR) is 12%. Due to the constant use and operation and maintenance required, determine how long this equipment should be kept by the contractor. N.B. SHOW THE DETAILED WORKINGS FOR EACH YEAR. DO NOT STOP AT YEAR AFTER THE ECONOMIC LIFE.