Airodyne Wind, Inc., has wind tunnels that can operate vertically or horizontally for evaluating the effects of air flow on a component's PCB response and reliability. The company expects to build a new tunnel that will be outfitted with multiple sensor ports. For the estimates below, calculate the equivalent annual cost of the project.

Airodyne Wind, Inc., has wind tunnels that can operate vertically or horizontally for evaluating the effects of air flow on a component's PCB response and reliability. The company expects to build a new tunnel that will be outfitted with multiple sensor ports. For the estimates below, calculate the equivalent annual cost of the project.

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

Please answer as quickly as possible and zoom in for clear view
An industrial machine costing $10,000 will produce net cash savings of $4,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR is 10% per year. What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to ± $2,000 changes in the repair cost. Perform the sensitivity analysis. Fill-in the table below. (Round to one decimal place.) Change in the repair cost - $2,000 $0 IRR 21.05% 9.61 % Is the project acceptable? Yes No
Required information Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $116,000 to provide short-haul earth- moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,900 per year. A complete overhaul at the end of year 3 costs an extra $3600. Calculate the annual cost of the truck at i= 8% per year. The annual cost of the truck is $- 503,717 per year. 13
An outboard motor has an initial price of $1,080. A service contract costs $350 for the first year and increases $130 per year thereafter. The total cost of the outboard motor (in dollars) after n years is given by C(n) = 1,080 + 150n + 30n“, where n21. Complete parts (A) through (C). (A) Write an expression for the average cost per year, C(n), for n years. C(n) =O %D
A bulk materials hauler purchased a used dump truck for %50,000. The operating cost was %5,000 per year, with average revenues of %7,500 per year. After 24 years, the truck was sold for %11,000. The rate of return was closest to; Your answer: 6.6% per year 2.6% per year 4.6% per year 7.6% per year
You work for Midstates Solar Power. A manager asked you to analyze the following two machines. Machine Semi has a first cost of $50,000 and an operating cost of $15,000 in year 1, increasing by $1500 every two years through year 6, after which time it will have a salvage value of $10,000. Machine Auto has a first cost of $50,000 and an operating cost of $20,000 in year 1, increasing by 5% per year through year 6, after which time it will have a salvage value of $15,000. Utilize an interest rate of 12% per year to determine both estimates. a) Which machine will have the lower capital recovery cost? b) Which machine will have the lower equivalent annual total cost?
Problem 03.015- Annual worth calculations Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $125,000 each and the military arms unit signs a contract to purchase 4,000 of them now and another 7,500 one year from now, what is the equivalent annual cost of the contract over a 8.00-year period at 12.00% per year interest? (Round the final answer to three decimal places.) The equivalent cost of the contract is determined to be $
The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the equivalent value (a) now and (b) for each year hereafter. The system has an installed cost of $150,000 and an additional cost of $50.000 after 10 years. The annual software maintenance contract cost is $5000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that = 5% per year for county funds.