Q: 1. As supervisor of a facilities engineering department, you consider mobile cranes to be critical…
A: we are going to solve problem with the help of RORAI method Annual worth cost method Present worth…
Q: The International Parcel Service has installed a new radio frequency identification system to help…
A: Year Cash Flow 0 -65,000 1 25,000 2 30,000 3 30,000 4 40,000 5 46,000
Q: The associated estimates are summarized below: $75,000 nnual receipts nnual expenses $45,000 seful…
A: *Answer:
Q: 10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A…
A: [a]Benefit/ cost ratio:-Benefit = Project A = 17,000,000 Project B = 17,000,000Cost = Project A =…
Q: It is proposed to place a cable on existing pole line along the shore of a lake to connect two…
A:
Q: Apply incremental B/C analysis at an interest rate of 8% per year to determine which alternative…
A: The cost-benefit analysis determines a ratio of the benefits to the cost of an investment. This…
Q: 9. An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in…
A: Given The first cost of the machine (P)=$1,050,000 Salvage value (F)=$225,000 Maintenance cost…
Q: A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is…
A: A Machine costs ₱80,000 estimated life of 10 years salvage value of ₱5,000 i=9%
Q: A project with 10-year life requires an initial investment of $30000. The annual cost of the project…
A: The solution in step 2
Q: . 1: An investment of P 250,000 can be made in a project that will produce a uniform annual revenue…
A: here we calculate the future worth , Present worth and Annual worth of the investment , so the…
Q: A machine has a first cost of $10,000 and annual costs of $3500. There is no salvage value, and…
A: Given information: Initial cost = $10,000 Annual costs = $3500 Interest rate = 10%
Q: Demonstrate that for this highway construction project, the same B/C ratio is obtained using the…
A: Annual worth: Annual worth comparisons are similar to present worth comparisons, except that at the…
Q: A problem often discussed in the engineering economy literature is the “oil-well pump problem.' Pump…
A:
Q: 10.4 (LG 10.4) The following data are available for two mutually exclusive projects: Project A…
A:
Q: It is proposed to place a cable on an existing pole line along the shore of a lake to connect two…
A: Given: Alternative A Alternative B Length per km 20 12 First Cost per km P 45000 P 63000…
Q: eering economy - ENGR 3322 The International Parcel Service has installed a new radio frequency…
A: Given capital investment = 65000 $ MARR = 18 %
Q: 3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical…
A: Given information Project A Initial capital=$272000 Annual cost=28800 Salvage value=25000 N= 6 years…
Q: Three alternative proposals are suggested for a project with the following cash flows. Choose the…
A: Cash Flow (CF) is the growth or lower in the quantity of cash a business, institution, or character…
Q: 1.) A piece of production equipment is to be replaced immediately because it no longer meets quality…
A: Answer in Step 2
Q: PLEASE SHOW COMPLETE SOLUTION, NO EXCEL.
A: As a reasonable rate of return, the Minimum Attractive Rate of Return (MARR) can be used to assess…
Q: Select the optimal from alternatives X,Y, using the PW (CW) criterion, if i=6% per year Alt.X Alt. Y…
A: Given: Alternative X Alternative Y FC 3500 4200 MC (For 1st 5 years) 1100 1000 Income…
Q: (b) A local government has funded a public project with the following data. Initial investments…
A: (i) AW of costs = P(A/P, i, n) + A - F(A/F, i, n) = 5,000,000(A/P, 6%, 8) +…
Q: A public project requires an initial investment of $1,000,000 and annual operating cost of $200,000…
A: Answer: Cost benefit ratio shows the relationship between cost and benefit for a project proposal or…
Q: Is considering two different pumps. Which of pumps should they purchase? The data on the pumps is…
A: The net present value or net present worth applies to a series of cash flows occurring at different…
Q: XYZ company has been presented with an opportunity to invest in a project for 10 years. If…
A: The IRR of the Project is 6.89 % With Minimum required return of 10 % and the given project IRR of…
Q: A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr…
A: I = $5000 Annual revenue = 1100 Expenses = 200 / year
Q: An investment firm plans to erect 200 wind turbines at a cost of $1.69 million each. The following…
A: Given : Power capacity per turbine: 1,550 kW • Project life: 20 years • Salvage value after 20…
Q: An analyst engineer of the company S&S Bakery has estimated the presented FEN (NET CASH FUND)…
A: A payment or stream of payments that will be received in the future has a present value that is…
Q: Given the following cash flows and if MARR=20% What is the external rate of return? (ERR] Ans. xu%…
A: Solution: Given MARR = 20% cash flow values are as below:
Q: Determine the best alternatives for a government project with the following data: PROJECT A B с…
A: Benefit-cost ratio:- The benefit-cost ratio (BCR), which can be stated in quantitative or…
Q: Question 7 A toll way was built in 2002 -2004 at annual construction cost of $10 million in which…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Given the data for two alternatives, choose the better alternative using the B/C ratio analysis.…
A: Alternative X First cost (Investment) = $100,000 Net annual benefits = Benefits - Operating…
Q: Consider four mutually exclusive projects each having an 8 year useful life. The costs and benefits…
A: We have been given four mutually exclusive projects and each project has an equal useful life of 8…
Q: A heating system: • requires an initial investment of $7000 • creates $500 annual operating cost at…
A: Initial Investment = $7000 Operating cost = $500 Salvage Value = 2000 Time period = 8 years Marr =…
Q: Mrs. Sally Selfish's company is considering a project that has a 10 year life and cost GHC 5000. It…
A:
Q: An untreated wooden pole that will last 10 years under a certain soil condition costs P 12,000. If a…
A: Return on Investment or ROI is defined as the measure of performance that is generally used for the…
Q: 1. Two 100-horsepower motors are being considered for use in the following table: Brand A Brand X…
A: Engineering economics is concerned with the strategies that enable an individual to make economic…
Q: A firm is considering the purchase of a new machine to increase the output of an existing production…
A: A B Initial Investment 14,000 65,000 Annual Cost 14,000 9,000 MV 8,000 13,000
Q: 8-28 A firm is considering three mutually exclusive alter- natives as part of a production…
A: Production is the process of merging numerous material and immaterial inputs (plans, information) to…
Q: Consider a paletizer a betting plant that has a first cost of $141.000, operating and maintenance…
A: Equivalent annual cost (EAC) is the annual cost of owning and maintaining an asset determined by…
Q: An injection - molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any…
A: The economic life of an asset is the length of time that the asset is used before it becomes too…
Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: Machine X Machine Y Initial Cost $200 $700 Uniform Annual Benefit End-of- useful-life salvage value…
A: * SOLUTION :-
Q: Base Model Initial Investment -$90,000 MARR = Annual Benefit $20,000 0.14 Project Life Suggestion:…
A: Initial Investment -90000 Annual Benefit 20000 Project Life 5 MARR 0.14
Q: The Company purchased a lot for P250k on which they will construct a building with 3 estimates…
A: *Answer:
Q: A company is considering the purchase of new equipment for $93,000. The projected annual net cash…
A: Net Present value is a tool which is used for calculating the current total value of a future assets…
Q: 1.) A piece of production equipment is to be replaced immediately because it no longer meets quality…
A: given A B Capital…
Q: Machine X has an initial cost of $14,000. It is expected to last 10 years, to cost $255 per year to…
A: Cost is two types that are average variable cost and average fixed cost. Average variable cost is…
Engineering economy - ENGR 3322
A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately $18,000 per year over the six-year study period. At MARR of 19%, calculate the benefit-cost ratio of the project
a. 53
b. 63
c. 73
d. None of the choices
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps
- 3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative B A Capital investment $272.000 $346.000 Annual expenses Useful life (years) | Salvage value 28.800 19,300 6. 25,000 40.000 Show that the same selection is made for the following methods: a. RORAI method3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative B A Capital investment $272.000 $346.000 Annual expenses Useful life (years) | Salvage value 28.800 19,300 6. 25,000 40.000 Show that the same selection is made for the following methods: a. RORAI method b. AWC method c. EUAC method3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative B A Capital investment $272.000 $346.000 Annual expenses Useful life (years) | Salvage value 28.800 19,300 6. 25,000 40.000 Show that the same selection is made for the following methods: c. EUAC method
- An oil company plans to purchase a piece of vacant land at the corner of two busy streets for $50,000. On properties of this type, the company installs businesses of three different types. Each has an estimated useful life of 15 years. The salvage value for each is estimated to be the $50,000 land cost. Plan Cost (in addition to land cost) Type of business Net annual income A $ 83,000 Conventional gas station $ 26,500 B $ 195,000 Add automatic car wash $ 39,750 C $ 115,000 Add quick car wash $ 31,200 if the oil company expects a 10% rate of return on its investments, which plan (if any) should be selected? Use incremental analysis, before tax.A company is currently paying its employees$0.56 per mile to drive their own cars on companybusiness. The company is considering supplyingemployees with cars, which would involve purchasing at $25,000 with an estimated three-year life, a netsalvage value of $8,000, taxes and insurance at a costof $1,200 per year, and operating and maintenanceexpenses of $0.30 per mile. If the interest rate is 10%and the company anticipates an employee’s annualtravel to be 30,000 miles, what is the equivalent costper mile (neglecting income taxes)Here, for an alternative with an initial cost of $350 and an annual benefit of $47.50 that increases by $10 each years. use a 8-year useful life and an 6%MARR to calculate: A. Future worth? B. Standard Benefit-cost Ratio? (Find both)
- 2. Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 15% per year. Which of the three alternatives, if any, should be adopted? State your main assumptions. Capital investment Net annual revenue Salvage value Useful life Caterpillar $22,000 $7,000 Deere $26,200 $9,500 Case $17,000 $5,200 $4,000 $5,000 $3,500 4 years 3 years 5 yearsA major equipment purchase is being considered by Metro Atlanta. The initial cost is determined to be $1,000,000. It is estimated that this new equipment will save $100,000 the first year and increase gradually by $50,000 every year for the next 6 years. MARR=10% a. Using Benefit- Cost analysis, what is the Benefit/Cost ratio for this equipment purchase? b. Based on the Benefit/Cost analysis should Metro Atlanta purchase the equipment?Question 3 A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10% compounded semiannually, determine if the project should be executed First cost $45,000 Semiannual operating cost $10,000 Semiannual income $20,000 Salvage value $20,000 Life in years 4 years Oa. IRR = 17% semiannual Ob. IRR= 18.7% semiannual O IRR = 16.9% semiannual Od. IRR 15.3% semiannual
- If one account receives a benefit in the form of cash, goods or services etc, there must be equal loss of benefit by another account. This refers to? a. bookkeeping b. single entry system c. accounting d. double entry system A corporate jet costs $1,350,000 and will incur $200,000 per year in maintenance costs. The jet can be sold for $650,000 after 5 years. What is the capital recovery? MARR = 15% a. $506,310 b. $306,310 c. $270,000 d. $650,000A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $114,000, and it will save an estimated 340,000 kilowatt-hours (kWh) of electric power each year over afive-year period. A kilowatt-hour of electricity costs $0.08. The market value, additional annual operating and maintenance expenses are negligible. What is the benefit-cost ratio of the project if the general inflation rate is 3% per year? The market interest rate = (im) is 22% per year, and the annual savings are expressed in year- zero dollars. Use the benefit-cost method to make a recommendation. The benefit-cost ratio of the system with PW is___---_?A food processing plant consumed 600,000 kW of electric energy annually and pays an average ofP2.00 per kWh. A study is being made to generate its own power to supply the plant the energy required, and that the power plant installed would cost P2,000,000. Annual operation andmaintenance,P800,000. Other expenses P100,000 per year. Life of power plant is 15 years; salvage value at the end of life is P200,000 annual taxes and insurances, 6% of first cost; and rate of interest is 15%. Using the sinking fund method for depreciation, determine if the power plant is justifiable. Compute using the present worth, annual worth, and rate of return.