Calisto Launch Services is an independent space corporation and has beencontracted to develop and launch one of two different satellites. Initial equipmentwill cost $620,000 for the first satellite and $680,000 for the second. Developmentwill take 5 years at an expected cost of $150,000 per year for the first satellite;$140,000 per year for the second. The same launch vehicle can be used for eithersatellite and will cost $265,000 at the time of the launch 5 years from now. At theconclusion of the launch, the contracting company will pay Calisto $2.5 million foreither satellite.What is the future worth of the first satellite and second satellite, use MARR of 10%per year?

the future worth of each satellite.For the first satellite:1. Present worth of initial…

Answered: Calisto Launch Services is an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Determine the FW of the following engineering project when the MARR is 17% per year. Is the project acceptable? Proposal A Investment cost $10,500 Expected life 4 years Market (salvage) valueª - $1,000 Annual receipts $9,000 $4,000 Annual expenses ³ A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 17% per year. The FW of the following engineering project is $. (Round to the nearest dollar.)
Kim has $35057 to invest for 10 years. She has the following options: [A]term deposit at 5% compounded annually; [B] Shares, paying a rate of 4.98% per annum with dividend paid quarterly; and [C] A building society account, paying a return of 5.06% per annum with monthly rests. Advise Kim on which option to take if all the investments are equally secure. Calculate all the resulting values per situation
perform Breakeven Analysis for each cash flow element and determine the value at which you would breakeven for the expected case scenario (the data provided). It is not necessary to provide a breakeven graph for each cash flow.
please answer all parts! list answers with question numbers. do not skip blanks !
Consider the comparison between alternatives A and B. Using present worth method of analysis, and at an interest rate of 10% per year, the values of n that you should use in the uniform series factors to make a correct comparison are: A B First Cost ₱500,000 ₱900,000 Annual Operating Cost ₱100,000 ₱40,000 Salvage Value ₱130,000 ₱150,000 Life 3 years 6 years a. n=3 years for A and n=3 years for B b. n=3 years for A and n=6 years for B c. n=6 years for A and n=6 years for B d. n=6 years for A and n=3 years for B
Poly-Chem Plastics is considering two types of injection molding machines: hydraulic and electric. The hydraulic press (HP) will have a first cost of $535,000, annual costs of $200.000, and a salvage value of $70.000 after 5 years. Electric machine technology (EMT) will have a first cost of $800.000, annual costs of $94,000, and a salvage value of $130,000 after 5 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Use an AW-based equation to determine the ROR on the extra investment required for the EMT alternative. The ROR on the extra investment for the EMT alternative is| %.
Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 14.5% per year compounded yearly. End of Year Series 1 Series 2 $0 $0 $275 1 $325 2 $375 $35X 3 $425 $25X 4 $0 $15X 5 $0 $5X Value of X: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +4.
Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339
Army Research Laboratory scientists developed a diffusion-enhanced adhesion process which is expected to significantly improve the performance of multifunction hybrid composites. NASA engineers estimate that composites made using the new process will result in savings in space exploration projects. The cash flows for one project are estimated. Determine the rate of return per year. Year, t Cost ($1000) Savings ($1000) 0 −210 — 1 −150 — 2–5 — 100 + 60(t − 2)
Why is it okay to use Incremental IRR between two same life projects that has different first cost and annual cash flow even when MARR is not given / stated ?
EncryptCo has two possible plans for accumulating money for capital projects. One plan is to save $100,000 per year, independent of growth. The second plan is to start with $80,000 per year and increase the annual contribution by 5% each year. The money will accumulate interest at 4% nominal annual, compounded quarterly. Which plan will have more money after 10 years?

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