A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction firm for $18,500. The instrument will be used for 6 years and be worth $2,750 at that time. The annual cost of use and maintenance will be $6,500. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $26,500, with use and maintenance costs of only $7,000 and salvage value after 6 years of $3,000. The marginal tax rate is 25%, and MARR is an after-tax 12%. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Alternative 1: $ Alternative 2: $

A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction firm for $18,500. The instrument will be used for 6 years and be worth $2,750 at that time. The annual cost of use and maintenance will be $6,500. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $26,500, with use and maintenance costs of only $7,000 and salvage value after 6 years of $3,000. The marginal tax rate is 25%, and MARR is an after-tax 12%. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Alternative 1: $ Alternative 2: $

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

BN5 (3) (a) Case: Recycling services for private businesses can be purchased from many firms in a competitive market. The Supply and Demand are: Ps = 1000 + 20Qs Pd=4000-5 Qal A Government is interested in promoting recycling by subsidizing the Cost of Services. Question: What is the Equilibrium Price and Quantity of Recycling Services?
Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below. Month in which student poll was taken Average of students’ responses as MPC March 0.41 June 0.30 September 0.22 December 0.56 What do these MPC’s imply about the students’ thinking over the course of the year? (Enter response here.) What is likely happening in the economy during the same period of time?
Topic: Economic Inequality This assignment focuses primarily on fundraising for both your policy campaign, and later, policy implementation. Please address the following questions: 1. What messaging will you use with decision makers to neutralize their concerns about the costs of implementation?
Write/ find an article about U.S economics that happened recently within this week. please help.
Scope : Islamic Economics
Topic: Economic Inequality This assignment focuses primarily on fundraising for both your policy campaign, and later, policy implementation. Please address the following questions: 1. Consider potential sources of fundraising for both the campaign and implementation.
7. There are three (3) types of resumes: chronological resume combination resume functional resume Please to create an introduction and conclusion for these three types of resumes. thankyou. (business communication question)
Research Report Topic: Effect of food prices increase on the lower class in a town Based on the topic, make up a Discussion for the report.
Subject: ( Enterprenurship ) Define SMEs. Also write down Financial and marketing problems of SMEs.
please answer number 1:bes 221-engineering economics. please give detailed and correct answers. I will report to bartleby thos tutors who will give incorrect answers.
Need help with multiple choice question
Topic: “Challenges faced by rural farmers in Mt. Royal, Carriacou due to rising food prices”. 1. Based on the topic above provide a Methodology.