A company is deciding whether to lease or buy a new truck. Given the information provided below, if the company finds out the truck maintenance cost is $3000 incurred by the lessor only, and paid at the end of each year. Net Advantage of lease (NAL) Tax CCA $2,500 30% 40% $2,000 10% 6 years The Company should (buy / lease) A/ the truck. Salvage Cost of Debt Useful life time

A company is deciding whether to lease or buy a new truck. Given the information provided below, if the company finds out the truck maintenance cost is $3000 incurred by the lessor only, and paid at the end of each year. Net Advantage of lease (NAL) Tax CCA $2,500 30% 40% $2,000 10% 6 years The Company should (buy / lease) A/ the truck. Salvage Cost of Debt Useful life time

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Required information Assume you started a sideline business in commercial photography last year using your then-owned equipment. Due to excellent success, you plan to purchase new equipment and upgrade your studio facility. First cost of equipment, $ -160,000 Annual expenses, $ per year -45,000 Annual revenue, $ per year 75,000 Determine the no-return payback period. The no-return payback period is years.
1. A company intends to replace equipment that is no longer able to meet its needs. The two best alternatives are to purchase a manual tool (A1) or an automatic tool (A2). The estimated economic consequences of the two alternatives are: A1 A2 Initial investment ($) 28.000 65.000 Annual withdrawal ($) 14.000 9.000 Additional withdrawal every 5 years ($) 14.000 9.000 Lifespan (years) 10 20 Residual value ($) 8.000 13.000 Based on the present worth analysis, with an interest rate of 15% per year, an analysis period of 20 years, and the assumption of recurrence, determine the best alternative that must be chosen using future worth analysis.
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Engineering economy - ENGR 3322 The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are incorrectly delivered. The capital investment in the system is $65,000, and the projected annual savings are tabled below. The system’s market value at the EOY five is negligible, and the MARR is 18% per year. Calculate the present worth of the project. a. $ 35,730 b. $ 36,730 c. $ 37,730 d. None of the choices
Use Rate of Return Method. Answer the given problem below. A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows. Money is worth 17% before taxes to the company. Which machine should be chosen? Machine A Machine B Machine C Machine D (FC) P 24,000 P 30,000 P 49,600 P 52,000 (OC)'year P 1,300 1,360 P 2,020 P P 2,400 P 11,600 P 2,800 (LC)/year P 9,320 P 4,200 P 2,000 (МC) year 1,900 1,300 700 (IT) уear P 720 900 1,488 1,560 Life 5 years 5 years 5 years 5 years
# 7 Use Excel - Be organized. Use Excel formulas/functions.  A new high efficiency motor is being considered for a large compressor.  It will cost $22,000 but it will save $8250 per year in O&M.  The useful life of the motor is 8 years. The company has a 3-year discounted payback period, and a MARR of 15%. (a) Should the motor be bought?
A new machine costs $899,090 and falls in a 29.50% CCA class. The machine will have zero value after 5 years of use but will save $417,680 annually in operating costs before taxes in those five years. Assume a tax rate of 34.17%. Using a required return of 15.11%, what is the equivalent annual cost (EAC) of the machine purchase, considering the annual cash flow, initial purchase, and CCA tax shield? Options $59,682 $61,252 $62,823 $64,393 $65,964
Nees answer ASAP
Subject: Engineerings Economics Topics:1. Capitalized cost 2. Amortization 3. Depreciation SLM and SFM USE THE REFERENCES AND FORMULA BELOW (ATTACHED ON THE PICTURE)
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A car lease agreement requires the following: down payment $2500 first month’s payment $346 security deposit $330 freight & PDI $765 federal air tax $110 How much is required upon signing the agreement (including 14% tax)?
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