An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost $15,000 per year. In addition, an extra $18.5 per hour labor cost will be incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 90 days per year? The MARR is 11% per year. The annual worth of plan 1 lease optimistic is $ The annual worth of plan 1 most likely is $[ The annual worth of plan 1 pessimistic is $ The annual worth of plan 2 rental is $ Plan 1 lease optimistic is better than rental of plan 2.

An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost $15,000 per year. In addition, an extra $18.5 per hour labor cost will be incurred for operating the rented equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 90 days per year? The MARR is 11% per year. The annual worth of plan 1 lease optimistic is $ The annual worth of plan 1 most likely is $[ The annual worth of plan 1 pessimistic is $ The annual worth of plan 2 rental is $ Plan 1 lease optimistic is better than rental of plan 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What is the purpose of graphic analysis?

A: Graphical analysis refers to the data analysis done using graphical techniques in order to determine…

Q: Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500…

A: The loan is the amount of money which would result in the amount of money borrowed and used for…

Q: Do you have any references or sources for this information

A: In an error correction model (ECM) expectations about future economic conditions can influence the…

Q: The table shows a private open economy. All figures are in billions of dollars. Real GDP C+ lg Net…

A: The real GDP refers to the total goods and services produced in an economy in a given fiscal…

Q: Question IV: (tariff in the 2-country case) Home's demand and supply for wheat are given by the…

A: (a):Step 1: (b):Step 2: (c):Step 3: (d):Step 4: (e):Step 5: (f):Step 6: (g):Step 7: (h):Step 8:

Q: I typed it in, it's wrong

A: Elasticity of demand is a concept used in economics to measure the responsiveness of the quantity…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: The parts where it is written on paper the paragraphs below. Can you please type them as I do not…

A: Budget line shows the relationship between the goods , their prices and the income of consumer. The…

Q: Additional: Get solutions in details

A: We are not able to solve this.Reason:You haven't provided the question.Alternative solution:Please…

Q: Answer the questions a through f

A: As per company policy we are only supposed to answer one question up-to 3 subsets in one session, so…

Q: 24 20 Price and co st (dollars per arate)

A: In short run a firm should shut down when the price is equal of less than the average variable cost.…

Q: U.S. International Trade in Goods and Services, February 2023 February 2023 January 2023 The U.S.…

A: Value of imports for a country is the value of all the goods and services which the country imports…

Q: Habit buying can be beneficial to consumers because (a) it result in paying lower prices for most…

A: The buying behavior of any customer depends on their habit , variety seeking, extended decision…

Q: Advantages and disadvantages of using technology - any ethical challenges?

A: Advantages of using technology Technology leads to increase in innovation.It creates new horizons of…

Q: HOW TO DRAW A TABLE FORM

A: There are 4 possible ways in which the other player can act :- 1) always choose ‘C’ 2) He will…

Q: Connor started with $10 and is saving $2 a week. Carlie started with $16 spending 1 a week. How many…

A: Present worth is a financial concept used to determine the value of future cash flows in today's…

Q: The option or alternatives from which decision are made

A: Alternatives ought to reflect generously various ways to deal with the issue or various needs across…

Question

only typed solution

An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1
requires the leasing of equipment for $60,000 initially and will cost between $0.40 and $0.95 per metric
ton to operate, with a most likely cost of $0.50 per metric ton. The pumper can pump 100 metric tons per
8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a rental option that will cost
$15,000 per year. In addition, an extra $18.5 per hour labor cost will be incurred for operating the rented
equipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed
for 90 days per year? The MARR is 11% per year.
The annual worth of plan 1 lease optimistic is $
The annual worth of plan 1 most likely is $
The annual worth of plan 1 pessimistic is $
The annual worth of plan 2 rental is $
Plan 1 lease optimistic is better
Plan 1 most likely is better
Plan 1 lease pessimistic is better
than rental of plan 2.
than rental of plan 2.
than rental of plan 2.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Annual Worth:

VIEW

Step 2: Calculate The annual worth of the plan 1 lease optimistic:

VIEW

Step 3: Calculate The annual worth of plan 1 lease most likely:

VIEW

Step 4: Calculate annual worth of the plan 1 lease pessimistic:

VIEW

Step 5: Calculate Annual Worth of Plan 2:

VIEW

Solution

VIEW

Step by step

Solved in 6 steps with 9 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

You are looking for a car to lease. Your income is $3,000 per month, and you know that you should not spend more than 20 percent of your income on a car payment. You have found four deals in the table below. options Location Monthly Rent Toyota Camry $400 Lincoln MKZ $660 Ford Fusion $380 BMW 740 $720 Instructions: In order to receive full credit, you must make a selection for each option. For the correct answer(s), click the box once to place a checkmark. For the incorrect answer(s), click the option twice to empty the box. Suppose you adhere to the 20 percent guideline but also receive a $100 monthly allowance from your parents towards your car payment, which option(s) fall within your budget? Group of answer choices Toyota Camry Lincoln MKZ Ford Fusion BMW 740
writr Cost–volume symbols?
I cannot understand anything written on this paper, would you please be able to type it?
Typed and correct answer please. I ll rate
please do d and e now please
What are the various types of manufacturing costs?
High quality information gruarantees that every decisions made will be a successful one that benefits the organization
What cultural aspects (language, religion, customs) a company must have in the area of technology
Typed plzzz And Asap Thanks
do it with pencil and paper
Typed answer please.
What is the unit contribution margin?