Acme Prototype, Inc. is considering the purchase of a metal 3D printer. MARR is 12% per year and the useful life is 5 years. Using annual worth (AW) analysis, which alternative has higher sensitivity to the Net Annual Revenue (NAR) as shown below? (Note: NAR = Annual Revenues - Annual Expenses). Change in NAR: • -20% 0% +30% Show the computation of the AWS for each NAR, provide a summary table comparing the AWs of each motivo forz. oooh ohonce in NAD and provide on Eucal plot showing the con itivity of

Acme Prototype, Inc. is considering the purchase of a metal 3D printer. MARR is 12% per year and the useful life is 5 years. Using annual worth (AW) analysis, which alternative has higher sensitivity to the Net Annual Revenue (NAR) as shown below? (Note: NAR = Annual Revenues - Annual Expenses). Change in NAR: • -20% 0% +30% Show the computation of the AWS for each NAR, provide a summary table comparing the AWs of each motivo forz. oooh ohonce in NAD and provide on Eucal plot showing the con itivity of

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A corporate jet costs $1,350,000 and will incur $200,000 per year in fixed cost (maintenance, ...) and $277 per hour variable cost (fuel, ..). The jet will be operated 1200 hours per year for 5 years and then sold for $650,000. The jet revenues $1,000 per hour. The MARR is 15% per year. Determine the Capital Recovery (CR) value of the jet.
The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to:
17) A professional photographer who specializes in wedding-related activities paid $24,800 for equipment that has a $2,000 estimated salvage value after five years. He estimates that his operating costs associated with hosting an event amount to $50 per day. If he charges $300 per day for his services, how many days (rounded up to the next integer) per year must he be employed in order to break even at an interest rate of 10% per year? (*
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Based on company records of similar equipment, a consulting aerospace engineer at Aerospatiale estimated AW values for a presently owned, highly accurate steel rivet inserter as shown. A challenger has ESL = 2 years and AWC= $−41,300 per year. The MARR is 12% per year. If Retained ThisNumber of Years The AW Value Is,$ per Year 1 −62,000 2 −51,000 3 −49,000 4 −53,000 5 −70,000 When should the next replacement evaluation take place, and under what assumption? The next replacement evaluation should take place in (Click to select) 4 2 3 5 years, and under the assumption that the (Click to select) defender challenger estimates do not change.
7.
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