An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $34,000, an annual operating cost (AOC) of $8,000, and a service life of 2 years. Method B will cost $74,000 to buy and will have an AOC of $5,000 over its 4-year service life. Method C costs $123,000 initially with an AOC of $5,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 10% of its first cost. Perform a future worth analysis to select the method at i= 12% per year. The future worth of method A is $ The future worth of method B is $ The future worth of method C is $

An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $34,000, an annual operating cost (AOC) of $8,000, and a service life of 2 years. Method B will cost $74,000 to buy and will have an AOC of $5,000 over its 4-year service life. Method C costs $123,000 initially with an AOC of $5,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 10% of its first cost. Perform a future worth analysis to select the method at i= 12% per year. The future worth of method A is $ The future worth of method B is $ The future worth of method C is $

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

only typed solution
Give typing answer with explanation and conclusion Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $780,000, an operating cost of $80,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,280,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $− , and the present worth of process W is $− . The process selected on the basis of the present worth analysis is process (Click to select) .
Fixed costs for Universal Exports are $600,000 annually. Its main-line export item is sold at a revenue of $2.10 per unit with variable costs of $1.50 per unit. (a) How many units must be sold each year for breakeven? (b) What would the annual profit be at sales of 1.3 million units? solve manually please <3
None
Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $38,000, an annual operating cost (AOC) of $10,000, and a service life of 2 years. Method B will cost $79,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $143,000 initially with an AOC of $3,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 6% of its first cost. Perform a future worth analysis to select the method at i= 13% per year. The future worth of method A is $55118 The future worth of method B is $ The future worth of method C is $ Method B is selected.
3
Since many U.S. Navy aircraft are at or near their usual retirement age of 30 years, military officials want a precise system to assess when aircraft should be taken out of service. A computational method developed at Carnegie Mellon maps in 3-D the microstructure of aircraft materials in their present state so that engineers can test them under different conditions of moisture, salt, dirt, etc. Military officials can then determine if an aircraft is fine, is in need of overhaul, or should be retired. If the 3-D system allows the Navy to use one airplane 2 years longer than it normally would have been used, thereby delaying the purchase of a $20 million aircraft for 2 years, what is the present worth of the assessment system at an interest rate of 8% per year?
An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $40,000, an annual operating cost (AOC) of $9000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an AOC of $6000 over its 4-year service life. Method C costs $130,000 initially with an AOC of $4000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 10% of its first cost. Perform both (a) future worth, and (b) present worth analyses to select the method at i = 10% per year.
Ee 353.
The CFO of a consulting engineering firm is deciding between purchasing Ford Explorers and Toyota 4Runners for company principals. The purchase price for the Ford Explorer will be $30,750. Annual maintenance costs for the Explorer are expected to be $575 per year more than that of the 4Runner. The purchase price for Toyota 4Runners is 35,250 The trade-in values after 3 years are estimated to be 50% of the first cost for the Explorer and 60% for the 4Runner. (a) What is the incremental ROR between the two vehicles? (b) Provided the firm’s MARR is 15% per year, which vehicle should it buy?
Don't use Ai and chatgpt. Answer in step by step with explanation
8.24 The Ecology Group wishes to purchase a piece of equipment for various metals recycling. Machine 1 costs $123,000, has a life of 10 years, an AOC of $5000, and requires one operator at a cost of $24 per hour to process 10 tons per hour. Machine 2 costs $70,000, has a life of 6 years, an AOC of $2500, and requires two operators at a cost of $24 per hour for each operator to process 6 tons per hour. a. Determine the breakeven tonnage of scrap metal at i = 7% per year and select the better machine for a processing level of 1000 tons per year.