A new machine can be purchased for $50,000. Its expected useful ife is seven years, with a salvage value of $5,000. Annual revenues will be $22,000 per year and annual e wil be 8,000 per year, over the seven-year study period. If the MARR is 10%, determine whether the offer should be accepted. Oa Acceptable and its AW $4257 OD. Acceptable, and its AW-$5,067 OC Not acceptabie and its AW $2,345 Od. Not acceptable and its AW $3.281

A new machine can be purchased for $50,000. Its expected useful ife is seven years, with a salvage value of $5,000. Annual revenues will be $22,000 per year and annual e wil be 8,000 per year, over the seven-year study period. If the MARR is 10%, determine whether the offer should be accepted. Oa Acceptable and its AW $4257 OD. Acceptable, and its AW-$5,067 OC Not acceptabie and its AW $2,345 Od. Not acceptable and its AW $3.281

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 machine costs $500,000 and will provide a benefit of $100,000 per year for 10 years. At the end of the 10th year, the machine has a salvage value of $10,000. At an interest rate of 8%, the NPW of the machine is most nearly: O $1.160,000 O $671.000 $490,000 O $176.000
am. 175.
Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine last 4 years. First cost: $48,000 Semiannual Operating cost: $7.000 Semiannual incomes: $14,000 Salvage value : $10,000 a. EAW=$21.745 b. EAW=$2,957 C. EAW=$175 d. EAW=$1,958
Time left 1:14:17 What is the Future worth of the following cashflows: First Cost = 52,000$, AOC = 4,000$, Salvage value = 12,000$, n = 13 and i= 14%. O a. -73,185$ O b. -12,527$ O c. 49,606$ O d. -401,960$ Recovery period is the remaining interval of time in the life of the asset in years. Select one: a. True O b. False
RESUELVA EL SIGUIENTE PROBLEMA Investment Annual operating Cost. Began first (1)year until the 6th year (A=$1,500) Annual Revenues: Began first (1¹h)year until the 6th year. Additional Revenues: Gradient beginning 2nd year G= $800 until the 6th year. Salvage Value at the end of 6th year or MV8= $2,000 Investment life n=6 years. MARR=6% $10,000 1,500 2,500 G=$800 MV6= $2,000 a. Draw the cash flow diagram b. PW, AW and FW Determine if the investment is viable or not. c. IRR d. ERR
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Breakeven Example 8.2 • MARR is 12% per year. Select the more economical vendor bid. -8,000 - 13.000 Initial cost. S -3,500 -1.600 Annual costs, S per year Salvage value. $ Life. vears 2,000 10