A proposed building may be roofed in either composition roofing (C) or galvanized steel sheet (S). The composition roof costs $56,000 and is replaced every 5 years (assume at the same cost). The steel roof costs $68,000 but the useful life is very long. Neither roof has any salvage value, nor is maintenance needed. If the MARR is 10%, what minimum life must the steel roof have to make it the better alternative? (Report to the nearest whole year; don't bother interpolating.)

Q: An organization is planning to put up its own building. Two proposals being considered are: A. The…

A: Comparison between two proposals for more economical can be found by calculating the present value…

Q: removal cost by $15,000. If it is reinforced, et) value would be $18,000 at the time it is concrete…

A: Given, Interest Rate= 8% Cost= $25,000 Initial Cost= $3,200 Salvage Value= $18,000 Annuity Factor is…

Q: You are running a small machine shop where you need to replace a worn-out sanding machine. Two…

A: Equivalent Annual cost :  To choose one model we have to find annual equivalent cost  of each model…

Q: Rust Industrial Systems is trying to decide between two different conveyor belt systems. System A…

A: Equivalent annual cost refers to the that is incurred annually for maintained, operating and owning…

Q: Horizon Wireless must rebuild a cell tower. A tower made of normal steel (NS) will cost $30,000 to…

A: Given information is: Horizon Wireless must rebuild a cell tower. A tower made of normal steel (NS)…

Q: Two methods can be used to produce solar panels for electric power generation. Method 1 will have an…

A: The method with the lowest NPV of the costs will be selected.

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $216,000, has a…

A: Given: Techron 1  Initial cost = $216000 Life = 3 years Pretax operating cost = $55000 Depreciation…

Q: Dell is considering replacing one of its material handling systems. It has an annual O&M cost of…

A: Net present value is used to calculate the existing value of future cash flows for decision making.

Q: A highway department is considering building a temporary bridge to cut travel time during the three…

A:

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $249,000, has a…

A: EAC refers to Equivalent Annual Cost, annual cost incurred for operations or business. To calculate…

Q: Purchase a new computer system for $45,000. The system is expected to last 6 years with a salvage…

A: There are 2 options -  1- Purchase a new computer system for $45,000 with salvage $7000 after 6…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a…

A: Investment = -213,000 Depreciation amount = Acquiring Value - Salvage Value Depreciation amount =…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $300,000, has a…

A: Calculation of EAC of Techron I and Techron II:The EAC is calculated using a excel spreadsheet. The…

Q: A company is trying to decide between two different conveyor belt systems. System A costs $300,000,…

A: Given, System A costs $300,000 Pretax annual costs $101000 System B costs $380,000

Q: If your tax rate is 35 percent and your discount rate is 14 percent, compute the EAC for both…

A: The yearly cost of owning and running an asset over its estimated life is called equivalent annual…

Q: The replacement of a planing machine is being considered by the Reardorn Furniture Company. (There…

A: For defender EUAC for 1 yr =4000 * (A/P, 15%,1) + 20000 - 3000 * (A/F, 15%,1) = 4000 * 1.15 + 20000…

Q: Rust Industrial Systems is trying to decide between two different conveyor belt systems. System A…

A: EAC or equivalent annual cost is the annual cost of owning and maintaining the asset over its entire…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $300,000, has a…

A: In capital budgeting, EAC (Estimated at Completion) is a technique used to estimate the future cash…

Q: Diemia Hospital has been considering the purchase of a new x−raymachine. The existing machine is…

A:

Q: North City must choose between two new snow-removal machines. The SuperBlower has a $70,000 first…

A: Operating costs are those costs which are used to operate a machine. These costs are an important…

Q: nthony’s College is considering the replacement analysis of a concrete mixer. The old mixer has…

A: The capital budgeting process that determines whether current assets need to be replaced or not is…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $216,000, has a…

A: The Equivalent Annual Cost (EAC) for Techron I is -$63,260.74.The Equivalent Annual Cost (EAC) for…

Q: A steel pedestrian overpass must either be reinforced or replaced. Reinforcement would cost $25,000…

A: Solution :   Particulars If Reinforced               Years 0 1 2 3 4 5 6…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $303,000, has a…

A: EAC refers to Equivalent Annual Cost, annual cost incurred for operations or business. To calculate…

Q: New windows are expected to save $950 per year in energy costs over their 30-year life for Fab…

A: IRR stands for "Internal Rate of Return." It is a financial metric used to estimate the…

Q: compute the EAC for both machines

A: EAC stands for Equivalent Annual Cost. It is the annual cost which is incurred for a project. To…

Q: A factory has the following alternative: buy a used machine at a price of $10,000.00 or a new…

A: Equivalent Annual Cost (EAC) is the cost per year of owning and using an asset over the course of…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.