Not use ai please A piece of equipment has a first cost of $165000, a maximum useful life of 7 years, and a market (salvage) valuedescribed by the relation S = 120,000-19000k, where k is the number of years since it was purchased. The salvagevalue cannot go below zero. The AOC series is estimated using AOC = 60,000 + 10000k. The interest rate is 12.00%per year. Determine the economic service life and the respective AW.The economic service life is 4.00 years, what is the AW value ($)?

Data Inputs:First Cost (P): $165,000Economic Service Life (k): 4 yearsInterest Rate (iii): 12%…

Answered: A piece of equipment has a first cost…

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

Machine D E First cost, $ −62,000 −77,000 AOC, $ per year −15,000 −21,000 Salvage value, $ 8,000 10,000 Life, years 4 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors.
Your boss has asked you to evaluate the economic viability of refinancing a loan on your plant's process equipment. The original loan of $400,000 was for 7 years. The payments are monthly and the nominal interest rate on the current loan is 6% per year. As of the present time, your company has had the loan for 36 months. The new loan would be for the current balance (i.e. the balance at the end of the 36th month on the old loan) with monthly payments at a nominal interest rate of 3% per year for 4 years. A one-time financing fee for the new loan is $10,000. Your company's MARR is 9% per year on a nominal basis. Determine if the new loan is economically advantageous. The present worth of the difference between the original financing plan and the new (proposed) financing plan is $ (Round to the nearest dollar.)
Information about a machine to be purchased is given below. • The purchase cost is ₺755,000 • Salvage value is ₺125,500 • Annual operating cost is ₺58,000 • Periodic repair-maintenance cost is ₺37,000 for every 3 years • In the 4th year,there is a replacement of parts and repair cost of ₺275,000 • The economic life of the machine is 12 years. The minimum attractive rate of return (MARR) is 15% per year. Calculate the annual value of the machine. !!Net cash flow diagrams must be drawn!!
A scientific calculator has a selling price of Php 850. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be it selling price after 5 years? ANSWER WITH COMPLETE SOLUTION
The following data for X and Y are in format [XY]. First cost in $: [-80,000,-95,000], Annual cost in $: [-20,000, -15,000], Salvage value in $: [10,000, 30,000], $ Life in years [2,4]. The interest rate is 10% per year. The equation that will calculate the present worth of machine X is: Select one: a. b. O c. PWX = -80,000 - 20,000(P/A, 10%,2) + 10,000(P/F,10%,2) PWX = -80,000 - 15,000(P/A, 10%,4) + 30,000[P/F,10%,4) PWX = -80,000 - 20,000(P/A,10%,4) - 70,000[P/F,10%,2) + 10,000(P/F,10%,4) O d. PWX = -80,000 - 20,000(P/A, 10%,4) - 80,000(P/F,10%,2) + 10,000 (P/F,10%,4)
A drug store is looking into the possibility of installing a 24/7-automated prescription refill system to increase its projected revenues by $20,000 per year over the next 5 years. Annual expenses to maintain the system are expected to be $5,000. The system will cost $50,000 and will have no market value at the end of the 5-year study period. The store’s MARR is 20% per year. Use the AW method to evaluate this investment.
an engineer knows that the supplier of their set-5100 laser surface metrology system used on one of their lines superseded their 5100 model with the 5105. the new model has a net cost of $420000. adding the new 5105 model to the production line would in decrease scrap rate estimated to save 630000 in the first year. the rate of return for on the set-5105 purchase is 13% MEMD IS 15% what is the opportunity cost
Precision Engineering Factory consumes 50,000 units of a component per year. The ordering, receiving and handling costs are Rs 3 per order while the trucking costs are Rs 12 per order. Further details are as follows: deterioration and obsolescence cost Rs 0.004 per unit per year; interest cost Re 0.06 per unit per year; storage cost Rs 1,000 per year for 50,000 units. Calculate the economic order quality.
An investor has invested $250,000 in a new rental property. Her estimated annual costs are $6000 and annual revenues are $20,000. What rate of return per year will the investor make over a 30-year period ignoring the salvage value? If the property can be sold for $200,000 what is the rate of return?
Calculate the present worth of all costs for a newly acquired machine with an initial cost of $24,000, no trade-in value, a life of 15 years, and an annual operating cost of $15,000 for the first 4 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year. The present worth of all costs for a newly acquired machine is determined to be $___.
Don't Use Excel function. Need Handwritten /Typed based solution using formula. Please Solve as fast as.
The first cost of an electric rebar bender is P355,000 and a salvage value of P50,000 at the end of its life for 5 years. Money is worth 4.3% annually. If there is no salvage value and the annual maintenance cost is P19,000, find the annual cost of perpetual service

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS