please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly A large standby electricity generator in a hospital operating room has afirst cost of $62,250 and may be used for a maximum of 6 years. Itssalvage value, which decreases by 15% per year, is described by theequation S = 62,250(1 – 0.15)", where n is the number of years afterpurchase. The operating cost of the generator will be constant at$8,250 per year, and the interest rate is 12% per year. Determine theeconomic service life and associated AW values.The economic service life is6O years and the AW value is $-14,477

The amount of years that the generator's annual worth (AW) allows it to reach its maximum potential…

Answered: A large standby electricity generator…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A small company wishes to set up a fund that can be used for technology purchases over the next 6 years. Their forecast is for $12,000 to be needed at the end of year 1, decreasing by $2,000 each year thereafter. The fund earns 8% per year. How much money must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal?
A series of four annual constant-dollar payments beginning with $10,000 at the end of the firstyear is growing at the rate of 8% per year. Assumethat the base year is the current year (n = 0). If themarket interest rate is 15% per year and the generalinflation rate ( f ) is 7% per year, find the presentworth of this series of payments, based on(a) Constant-dollar analysis(b) Actual-dollar analysis
Required information Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $130,000 to provide short-haul earth- moving services. The company sold it today for $45,000, Operating and maintenance costs averaged $10,000 per year A complete overhaul at the end of year 6 costs an extra $3600. Calculate the annual cost of the truck at /- 8% per year. The annual cost of the truck is $- per year.
A manufacturer desires to set aside a certain sum of money to cover the yearly operating expenses of P5k & the cost of replacing every yr the dies of stamping machine for P3k for a period of 10 yrs. The money will be deposited in a savings account earning 10% per annum, determine the sum of money that must be deposited including the initial cost of the die.
20 years later, Alex is has $1,000,000 in his investment account. He plans to spend $200,000 each year from his account. How many years would it take before his account is depleted? Use i = 8% per year.
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7.
The annual worth for years 1 through 7 of the cash flows shown is $35,000. What is the amount of x, the cash flow in year 3, at i - 8% per year? Write the basic set up equations, formulae used and all detailed calculations used to arrive your answer. The value or x as per your calculation is_ i= 7% per year 0. 1 4 6. 7 Years 3000 4000 2x 7000 8000 9000
Maintenance cost of a machine is S 100 during the second year and to increase by $ 100 every year for the succeeding 5 years. What is the present value of the maintenance costs if the gradient to present equivalent conversion factor is equal to 32.18,the gradient to uniform series conversion factor is 4.59, the gradient to future equivalent conversion factor is 42.87. Show solutions
An electronics firm invested $50,000 in a precision inspection device. They spend $1500 each year to operate and maintain it. An additional $750 is spent in years 2 and 4 for software updates. At the end of 5 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate to sell the inspection device for $40,000, the original price. Compute the equivalent uniform annual cost during the 5 years the device was used. Assume interest at 10% per year.
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The factor value of (A/F,10%6,5) is 0.16380 Oa. O b. 6.1051 3.7908 0.26380 Od.

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