Acme Molding is examining 5 alternatives for a piece of material handling equipment. Each has an expected life of 8 years with no salvage value, and Acme's MARR is 12%. Using an incremental analysis, which material handling alternative should be chosen? Alternative A B C D E Capital $12,000 $12,500 $14,400 $20000 $16250 investment Net annual $2,500 $2,520 $3,050 $4500 $3600 income

Acme Molding is examining 5 alternatives for a piece of material handling equipment. Each has an expected life of 8 years with no salvage value, and Acme's MARR is 12%. Using an incremental analysis, which material handling alternative should be chosen? Alternative A B C D E Capital $12,000 $12,500 $14,400 $20000 $16250 investment Net annual $2,500 $2,520 $3,050 $4500 $3600 income

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

A junior PM determines the present worth of a project to be $56,417. He misplaced the full set of calculations but knows that the project lasts 5 years with a first cost of $180,000, and a set of equal cash flows at the end of each year. MARR used was 10%. What is the IRR for this project?
Hand written solutions are strictly prohibited
The General Hospital is evaluating new office equipment offered by four companies. The useful life of the equipment is 5 years. First cost Maintenance and operating cost (annual) Annual benefit Salvage value Company A Company B Company C Company D $15,000 $18,000 $25,000 $20,000 1,600 1,100 30 55 20 40 7500 3,000 9,000 3,500 400 13,000 6,000 The internal rate of return for Company A is close to (%) 900 11,000 4,500
Economics Two alternative water purification systems are considered to meet the drinking water needs in Canada. The data of the two alternatives are given in the table below. If the interest is 12% compound, which alternative would be appropriate using the annual equivalent (AE) method? System 1 System 2 System 3 initial investment cost -100 -60 -1000 monthly cost -10 -12 -8 maintenance costs -50 Once in two years -30 once in a year No scrap value economic life (years) 10 8 no 4 3 infinity
QUESTION 7 for th below two machines and based on AW analysis which machine we should select? MARR-10%. Machine A Machine B First cost, $ 100,000 Annual cost, S/year 7,000 Salvage value, $ Life, years 3 infinite Answer the below question: A-the AW for machine A QUESTION 8 For th below two machines and based on AW analysis which machine we should select? MARR-10% Machine A Machine B First cost, $ 135,982 Annual cost, Siyear 8,740 12.308 Salvage value, $ Life, years 3 infinite Answer the below question: B- the AW for machine B QUESTION 9 C-Based on the AW value you got in the previous 2 questions, which machine we should select? type you explanation below For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) B IUS Paragraph M Arial Y 10pt 田饼印园 BE 0) 20,000 9,000 4,000 23,720 4.805- !!! 4
Littrell's Nursery needs a new irrigation system. System one will cost $145,000, have annual maintenance costs of $10,000, and need an overhaul at the end of year six costing $30,000. System two will have first year maintenance costs of $5,000 with increases of $500 each year thereafter. System two would not require an overhaul. Both systems will have no salvage value after 12 years. If Littrell's cost of capital is 4%, using annual worth analysis determine the maximum Littrell's should be willing to pay for system two.
Al Noor Construction Company is considering two types of tower cranes. The cash flow for the two types are shown below: Model Purchase Cost Annual Operation Cost Annual Revenue Salvage Value Useful Life A $10 000 $1.000 $4.000 0 5 Years B $15 000 $800 3.300 5000 10 Years The MARR is 12%. Based on Future Worth (FW) and Annual Worth (AW) of analysis, which type of crane, should be selected? Also draw the cash flow diagrams.
M12
Which increment should be examined first in incremental rate of return analysis, if MARR = 10.0%? Do-nothing A B C D First cost 0 $8,000 $4,500 $8,500 $6,000 Annual 0 1,387 914 1,661 935 benefit Life 10 yrs ROR 11.5% 15.5% 14.5% 9.0% A-B OB-A OA-C OB-C
A sportswear factory has two alternative machines for producing jerseys. Costs are shown below. Minimum acceptable rate of return is 8%.What is the annual cost for machine Y?
6
Plz solve in 1/2 hour it's urgently need