An injection molding system has a first cost of $195000 and an annual operating cost of $73000 in years 1 and 2, increasing by $3500per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximumuseful life of 5 years. Using a MARR of 12.00% per year, determine the ESL and the respective AW value of the system.The ESL isyear(s) and AW value of the system is $

Answered: Image /qna-images/answer/ca7d6e40-aca1-4614-8a4d-92e72dbed978.jpg

Answered: An injection molding system has a first…

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

Investment Cost Useful Life 15 years Market Value, aka salvage value (EOY 15) 3,000 Annual Operating Expenses Overhaul cost--EOY 5 Overhaul cost--EOY10 ('000s of $) 13,000 $19,553,380. NO. 1,000 $19,210,488. YES 200 Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are shown in the table. Should the plant be built? 550 $19,553,380. Impossible to say without additional information. O $19,210,488. Impossible to say without additional information.
A building cost P8.5 million and the salvage value is P50,000 after 23 years. The annual maintenance cost is P85,000, costs of repair is P350,000 every 3 years. Find the capitalized cost if money worth 14% per annum. What is the renewal cost? What is the capitalized cost? (2 decimal places, rounded off), if whole number no need to add .00
ff2
Ans is $ 7.322 please correct me
A road resurfacing project costs $250,000, lasts 5 years and saves $150,000 annually in patching costs. MARR is 12%. Determine the annual worth (in $)
7
Machine D E First cost, $ −62,000 −77,000 AOC, $ per year −15,000 −21,000 Salvage value, $ 8,000 10,000 Life, years 4 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors.
an engineer knows that the supplier of their set-5100 laser surface metrology system used on one of their lines superseded their 5100 model with the 5105. the new model has a net cost of $420000. adding the new 5105 model to the production line would in decrease scrap rate estimated to save 630000 in the first year. the rate of return for on the set-5105 purchase is 13% MEMD IS 15% what is the opportunity cost
AE Criterion - Single Project* *Blank & Tarquin (2005). Engineering Economy, 7th edition. Example 6.3. The owner of a pizza shop plans to purchase and install five portable in-car systems to increase delivery speed and accuracy. Each system costs $4600, has a 5-year useful life, and may be salvaged for an estimated $300. Total operating cost for all systems is $1000 for the first year, increasing by $100 per year thereafter. The owner estimates increased net income of $6000 per year for all five systems. Is this project financially viable at an MARR of 10%?
A piece of equipment has a first cost of $60000, a maximum useful life of 4 years, and a market (salvage) value described by the relation Sk = 48000 – 8400k, where k is the number of years since it was purchased. The AOC series is estimated using AOC = 24000 + 3600k. The interest rate is 9% per year. When should the company replace this asset?
Precision Engineering Factory consumes 50,000 units of a component per year. The ordering, receiving and handling costs are Rs 3 per order while the trucking costs are Rs 12 per order. Further details are as follows: deterioration and obsolescence cost Rs 0.004 per unit per year; interest cost Re 0.06 per unit per year; storage cost Rs 1,000 per year for 50,000 units. Calculate the economic order quality.
A tunnel to transport water initially cost $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle as shown below, assume MARR is 20% per year. note (writ all numbers without rounding and without any units) End of Year: Maintenance: $35,000 $35,000 $35,000 $45,000 $45,000 $60,000 Compute the Equivalent Annual Cost of the maintenance. Hint: Don't insert the negative sign Compute the Capitalized Cost? Hint: Don't insert the negative sign

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS