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

a. Find the breakeven market value.b.Find the breakeven annual expense.C.Is the decision more sensitive to changes in market value or annual expense? How doyou know?
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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
Your company is determing whether or not it should invest in a new pallet wrapping station. The station would cost $6,500 and your company's MARR is 13%. You estimate the purchasing a pallet wrapper would save you $2,000 in labor annually, and at the end of 3 years you would realize a salvage value of $400. How would you calculate the present worth of this investment in Excel?
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7) Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the present worth of this project?
IC OM B D X Life/years Y Z $320,000 $340,000 $45,000 $35,000 $110,000 $210,000 $20,000 $25,000 10 20 W V $400,000 $200,000 $50,000 $20,000 $70,000 $180,000 $10,000 $30,000 10 20 $500,000 $50,000 $80,000 $20,000 15 Based on the the above ME alliterative and using the B/C analyses, which alternative we should select? 10% OX OY OZ OW OV
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.