A solid-waste recycling plant is considering two types of storage bins. Use ROR evaluation and an MARR of 14% per year to determine which should be selected. Storage Bin First Cost, $ AOC, $ per year Salvage Value, $ Life, Years P -20,000 -4000 1400 3 -35,000 -2100 2200 6
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- The Manager of a canned food processing plant is trying to decide between two labelling machines. Determine which should be selected on the basis of rate of return with MARR of 20% per year. First cost, S Annual operating cost, S Salvage value, S Life, years Machine A -15,000 -1,600 3,000 3 Machine B -25,000 -400 6,000 6A small town is considering two potential alternatives for a garbage collection system. The following cost data has been compiled. If the interest rate is 7%, Using the conventional B/C ratio, what is the ratio and which alternative should be chosen? Salvage value is considered an offset to the original cost. System A System B Year O, first cost 350,000 250,000 Annual savings 32,000 22,000 Salvage value 50,000 40,000 LIfe 30 30Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis? Machine X Machine Y First cost, $ -200,000 -400,000 Annual operating cost, $ per year -40.000 -50,000 Salvage value, $ 80,000 90,000 Life, years 3 Solution: PW Machine x =5 (Use the right sign) PW Machine Y = 5 (Use the right sign) So, the best alternative is Machine
- You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 13% per year? Why is yours the correct choice? Alternative First Cost X $-45,000 Maintenance cost, per $-9000 Year Salvage Value $1,000 Life 5 years Y $-55,000 $-4000 $6,500 5 years The present worth of alternative X is $ 13888 and that of alternative Y is $ 44459.4 Alternative X is selected by the company.We are study about two different type liquid filter systems for filtration system for the most economic plan for filter system maintenance. Please calculate the cost for each option and answer the following questions: Filter change Labor cost for change Filter material cost requirement the filter Option A 3/day $10 $3.50/filter Option B 1/week $10 $90.00/filter The labor cost per week of [ Choose ] Option A The labor cost per week of [ Choose ] Option B The material cost per week of Option A [ Choose ] The material cost per week of [Choose ] Option B >Solar and conventional alternatives are available for providing energy at a remote U.S. Army training site. The costs associated with each alternative are shown. Use the B/C method to determine which should be selected at an interest rate of 8% per year over a 10-year study period. Conventional 400000 Solar Initial cost, S Annual power cost, S/yr Salvage value, S 2,600.000 160,000 18,000 20,000 300.000
- For the below ME alternatives, which machine should be selected based on the AW analysis. MARR-10% Machine B 27,724 6,000 Machine A Machine C First cost, $ 15000 10000 Annual cost, S/year Salvage value, $ Life, years 8,293 4,000 4,000 5,000 1,000 Answer the below questions: B- AW for machine B= For the below ME alternatives, which machine should be selected based on the AW analysis. MARR 10%. Machine A 15000 Machine B Machine C 12,409 30000 First cost, $ Annual cost, $/year Salvage value, $ Life, years 17,181 6,000 4,000 4,000 5.000 1,000 Answer the below questions: C- AW for machine C=1) A distribution company is considering three different alternatives to satisfy their customer's demands. Their options are to rent a ready distribution center (D01), Rent and mobilize a center (D02), or outsourcing (OS). The estimate for each method is shown. The lifetime for D01, D02, and OS are 2, 6, and 3 respectively. MARR is 0.08 per year. D01 D02 OS FIRST COST, $ 138,000 962,000 АОС, $ SV, $ 113,000 70,000 138,000 36,000 352,000 a) Draw the cash flow for all of alternatives. b) Which alternative will be selected on the basis of PW calculation? Why? c) If OS increases 20% each year, which alternative will be more economical (PW method)? d) Which alternative will be selected if AW method is used?To recover the waste heat from the processed fluid, a chemical industry planned to invest in a heat exchanger. Company has 4 investment options namely HE1, HE2, HE3 & HE4. Company expected at least 20 % annual return before taxes based on the purchased cost. HE1 HE2 HE3 HE4 Purchased Cost (OMR) 13000 17000 20000 38000 Maintenance Cost (as % of purchased cost) 18 20 25 22 Operation Cost (OMR) 4500 6000 8000 9000 Energy Saving (OMR) 12000 15000 18000 25000 Suggest the suitable heat exchanger to the company based on the following methods. Justify the statement. a) Incremental investment returns method b) Minimum return as a cost method
- A firm is trying to decide which of two machines to purchase as described in in the table below. Using the interest rate 9% or 0.09, use present worth analysis to determine which machine, if either, should be purchased. Show all your work. Machine: A - B First Cost: $800 - $600 Annual Net Benefit: $130 - $230 Salvage Value: $40 - $20 Usefil Life (years): 9 - 3The Fence Company is setting up a new production line to create top rails. The relevant data for two alternatives are shown below. Flow Line Manufacturing Cell Installed Cost Expected Life Salvage Value Variable Cost per Top Rail Click here to access the TVM Factor Table Calculator $15,000 5 years $0 $6.00 $10,000 5 years $0 $7.00Reference: Case Study S Dunn Manufacturing is considering the following two alternatives. The cost information for the two proposals for replacing an equipment are provided are in table below. Initial cost Benefits/year Machine X $120,000 $20,000 for the first 10 years and $9,000 for the next 10 years Life Salvage value $40,000 MARR 5.2. The NPW of machine X is A) $35,158 B) $48,192 C) $50,752 Machine Y $96,000 $12,000 per year for 20 years. 20 years 8% $20,000
