Andrew is considering buyng a new taming tractor for ha tarm. He has a choice between a John-Deere-XP tractor and a Sunfower-FT tractor. Andrew has a MARR of B%. John-Deere-XP: First Cost $150,000. Life: 10 years, zero salvage value at the end of 10 years Annual Expense (maintenance, charging, etc.) $3,000. First Cost $200,000. Life: 15 years, zero salvage value at the end of 15 years Annual Expense (maintenance, charging, etc.) $3,500. Sunflower-FT For a 10-year study period, what salvage value for the extra 5 years of ie for Sunfower-FT would resut in that both tractors are equivalent in Present Worth? S80,0158 O$115,190. S87,734.1 OS96,133.6 O$105,266

Andrew is considering buyng a new taming tractor for ha tarm. He has a choice between a John-Deere-XP tractor and a Sunfower-FT tractor. Andrew has a MARR of B%. John-Deere-XP: First Cost $150,000. Life: 10 years, zero salvage value at the end of 10 years Annual Expense (maintenance, charging, etc.) $3,000. First Cost $200,000. Life: 15 years, zero salvage value at the end of 15 years Annual Expense (maintenance, charging, etc.) $3,500. Sunflower-FT For a 10-year study period, what salvage value for the extra 5 years of ie for Sunfower-FT would resut in that both tractors are equivalent in Present Worth? S80,0158 O$115,190. S87,734.1 OS96,133.6 O$105,266

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Mr Dela Cruz is going to buy a new machine for manufacturing its product: Machine A has a first cost of P50,000; annual maintenance P6,000; life 12 years and salvage value of P2,000. Machine B has a first cost of P140,000; annual maintenance P2,500, life 36 years and salvage value P10,000. Money is worth 9% .Compute the annual cost of machine B choices: A. P551 B. P2,500 C. P15,651 D. P7,550 COMPELETE SOLUTION
Identify the one true statement about the annualized worth. See attachment.
Whole solution
Rerform an EAC analysis and evaluate what decision to make regarding 2 challengers and 1 defender. Elaborate:a) Graphsb) EAC analysisc) Conclude the exercise and make a decision regarding the results Machine N1 (#1 challenger) useful life = 8 years Initial Cost $15,000 MARR 18% Year Operating costs Market value EAC 1 $ 355.00 $ 8,000.00 2 $ 500.00 $ 7,000.00 3 $ 788.00 $ 6,000.00 4 $ 1,000.00 $ 5,000.00 5 $ 1,355.00 $ 4,000.00 6 $ 1,688.00 $ 3,000.00 7 $ 2,012.00 $ 1,000.00 8 $ 2,345.00 $ 0.00
None
Q3 solution
A brass pump and a stainless-steel pump are being compared for an application in which their operating costs will be the same. The firm uses an interest rate of 8%. Compute each alternative's present worth with an infinite horizon, and determine the ratio of PW stainless to PW brass. The brass pump lasts 3 years and cost P 12,000. The stainless steel pump lasts 4 years and costsP 15,000. Neither will have a salvage value.
Need answers ASAP... The annual worth can be calculated from the alternative’s: a. either ( a) or ( b) b. future worth by multiplying by ( F/A, i, n) c. all of the above d. present worth by multiplying by ( A/P, i, n)