A piece of equipment has a first cost of $160,000, a maximum useful life of 7 years, and a market (salvage) value described by the relation S 120,000 - 9,000k, where k is the number of years since it was purchased. The salvage value cannot go below zero. The AOC series is estimated using AOC = 60,000+ 6,000k. The interest rate is 9% per year. Determine the economic service life and the respective AW. The economic service life is year(s) and the AW value is $

A theft-avoidance locking system has a first cost of $23,500, an AOC of $16,000, and no salvage value after its 3-year life. Assume that you were told the service provided by this asset would be needed for only 5 years. This means that the asset will have to be repurchased and kept for only 2 years. What would its market value, call it M, have to be after 2 years in order to make its annual worth the same as it is for its 3-year life cycle at an interest rate of 10% per year? Determine the market value M using factors.   The market value M is $

10. Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows: Power Plant NOT (thousands of $) $13,000 15 years $3,000 $1,000 $200 $550 Investment cost Useful life Market value (EOY 15) Annual operating expenses Overhaul cost-end of 5th year Overhaul cost-end of 10th year

New microelectronics testing equipment was purchased 2years ago by Mytesmall Industries at a cost of $600,000. Atthat time, it was expected to be used for 5 years and thentraded or sold for its salvage value of $75,000. Expandedbusiness in newly developed international markets is forcingthe decision to trade now for a new unit at a cost of$800,000. The current equipment could be retained, ifnecessary, for another 2 years, at which time it would have a$5000 estimated market value. The current unit is appraisedat $350,000 on the international market, and if it is used foranother 2 years, it will have M&O costs (exclusive ofoperator costs) of $125,000 per year. Determine the valuesof P, n, S, and AOC for this defender if a replacementanalysis were performed today. P = market value =$350,000AOC = $125,000 per yearn = 2 yearsS = $5,000

A delivery car had a first cost of $34,000, an annual operating cost of $15,000, and an estimated $5000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 4 years and must be sold now as a used vehicle. At an interest rate of 12% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? The market value of the used vehicle is determined to be $ 26423

there are three machines in the mechanicle angineering lab A ,B , and C and need to be evaluted economically, machine A has first cost of $4500,an annual operating cost(AOE) of $900, a salvage value of $200 and a service life 4 year. machine B has first cost of $3500, an annual operating cost(AOE) of $700, a salvage value of $350, and a service life 4 year. machine C has first cost of $6000, an annual operating cost(AOE) of $50, a salvage value of $100 and a service life 8 year. which machine should be selected ? the MARR is 10% per year. (a) machine A (B) machine B (c) machine C (d) none

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Randall-Rico Consultants, 5 years ago, purchased for $45,000 a microwave signal graphical plotter for corrosion detection in concrete structures. It is expected to have the market values and annual operating costs shown for its remaining useful life of up to 3 years. It could be traded now at an appraised market value of $8000. Year Market Value at End of Year, $ AOC, $ per Year 1 6000 −50,000 2 4000 −53,000 3 1000 −60,000 A replacement plotter with new Internet-based, digital technology costs $125,000, has an estimated salvage value of 8% of the purchase price after its 5-year life, and an AOC of 20% of its purchase price. At an interest rate of 15% per year, determine how many more years Randall-Rico should retain the present plotter.

An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $5,000 and it will cost $1,500 per year to operate at the end of year that follows. She will keep the vehicle for 4 years; at the end of this period, the upgraded vehicle will have a salvage value of $4,000. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $10,000 and that there will be $4,500 due at lease signing. She further estimates that it will cost $3,000 per year to lease and operate the vehicle. The independent contractor's MARR is 12%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. EUAC(keep)$ _____ EUAC(lease)$ _____ What alternative should the independent contractor choose: a. either…