Engineering Econ HW1 Q3 ACME, Inc., is considering a robot that will cost $60,000 tobuy. After 6 years its salvage value will be $14,000. Anoverhaul costing $13,000 will be needed in Year 4. O&Mcosts will be $2500 per year. Draw the cash flow diagram.

Answered: ACME, Inc., is considering a robot that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Required information Akash Uni-Safe in Chennai, India, makes Terminator fire extinguishers. The company needs replacement equipment to form the neck at the top of each extinguisher during production. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. D -68,000 -14,000 8,000 E -78,000 -17,000 10,000 6 Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors. The future worth of machine D is $- [138012.93 The machine selected based on the future worth analysis is and the future worth of machine E is $- 138012.93
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ACME, Inc., is considering a robot that will cost $60,000 to buy. After 6 years its salvage value will be $14,000. An overhaul costing $13,000 will be needed in Year 4. O&M costs will be $2500 per year. Draw the cash flow diagram.