A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $80,000 with $2,500 salvage value after 16 years. The other can be purchased and installed for $105,000 with $2,500 salvage value after 16 years. Operation and maintenance for each is expected to be $17,500 and $11,500 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 25 %, and has a MARR of 9% after taxes. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Part a Determine which alternative is less costly, based upon comparison of after-tax annual worth Show the AW values used to make your decision: Conveyor 1:$ Conveyor 2: S Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.

A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $80,000 with $2,500 salvage value after 16 years. The other can be purchased and installed for $105,000 with $2,500 salvage value after 16 years. Operation and maintenance for each is expected to be $17,500 and $11,500 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 25 %, and has a MARR of 9% after taxes. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Part a Determine which alternative is less costly, based upon comparison of after-tax annual worth Show the AW values used to make your decision: Conveyor 1:$ Conveyor 2: S Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Q4) Clarify whole known concepts associated with TVM? Give examples about simple & compound rate of interest? (17.5 marks)
A company selling widgets has found that the number of items sold, x, depends upon the price, p at which 80000 they're sold, according the equation z : (0.6p + 1)? Due to inflation and increasing health benefit costs, the company has been increasing the price by $0.04 per month. Find the rate at which revenue is changing when the company is selling widgets at $7 each. Revenue is decreasing by dollars per month Hint: Give your answer as a positive value.
You are considering getting a Little Nero Caesar Salad Franchise, because your boss (the owner of a Down Under Sandwich Shoppe) seems to be making it big. The Down Under Shoppe grosses an average of $380,000 sales annually. You estimate that your business will gross an average of 95% of Down Under’s sales. You must borrow $320,000 from the bank. The bank will charge you 12% per annum interest on this loan. You also will invest $50,000 of your savings in the business (thus you will no longer receive the 4% per annum interest from this). NOTE: neither the bank loan principal nor the $50,000 of your savings you invest is an explicit or implicit cost. However, the interest paid on the bank loan is explicit and the interest foregone on your savings is implicit. Other estimated explicit expenses are: labor $130,000 per year; rent $12,000 a year; utilities $4,000 a year; and salad ingredients $140,000 a year. An explicit expense you will have to pay Little Nero, Inc., is a franchise…
A Government issues a bond that pays 1000$ in 1 year. If the price of the bond is 920$, what is the implicit interest rate that the government is paying? Provide an answer in percentage between 0 and 100. Answer: x (8.7)
the answer to this question is Q4.20= 3.6year but we just need to find how we get that answer for these questions, please help NO EXCEL
The sole proprietor of the FM2 Financial Services, Bondo, receives allaccounting profits earned by her firm and a K28,000-a-year salary she pays herself. Itis noteworthy that she also has a standing salary offer of K35,000 a year if she agreesto work for Bank of Zambia. If she had invested her capital outside her own company,she estimates that would have made a return of K22,000 a year. Further, informationhas reached you that last year, Bondo’s accounting profit was K50,000. Calculate hereconomic profit?
Estimate the value of money multiplier if the LRR is 21℅
In the 1981 census, the population of Indarin was found to be 6.7 x 10'. If the population increases at the rate of 2.5% every year, what would be the population in 1991? ovd
Analyse the impact of Covid-19 on the industry and the economy of India
If MPC is 0.6 an increase of N$120 in autonomous investment will increase
Solve the attachment
The Department of the Navy estimates that the learning rate for shipbuilding is 80%. Assuming the 80% rate applies to nuclear submarines, how long should it take to build the 12th vessel, if the first one took 62 months to complete?