Please correct answer and don't use hand rating Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, thecosts associated with the pilot test product line were as follows: first cost of $40,000 and annual costs of $18,000. Annual revenue was$37,000 and used equipment was salvaged for $4,000. What rate of return did the company make on this product?The rate of return the company made on the product is59%.

Given:Initial investment (Year 0): $40,000Annual revenue (Years 1-5): $37,000Annual cost (Years…

Answered: Chemco Enterprises is the manufacturer…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows : Power Plant (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 USING FUTURE WORTH (FW)
Evaluate a combined cycle power plant on the basis of the FW method when the MARR is 12% per year. Pertinent cost data are as follows : Power Plant (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 WITH DIAGRAM CASH FLOW THANK YOU
Give typing answer with explanation and conclusion Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $780,000, an operating cost of $80,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,280,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $− , and the present worth of process W is $− . The process selected on the basis of the present worth analysis is process (Click to select) .
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custom-designed home, FD, the prime contractor, realized he was not going to make the big profit that he had anticipated due to the many unique features of the home for which he had not correctly estimated the cost to the owners. The contract was fixed-price with no more than 10% override on the total cost. As time proceeded, FD took the choices of the owners on appliances, finishing work on the floors and walls, and many other features and purchased look-alike substitutes from questionable-quality, internationallybased manufacturers and vendors. After living in the house for only 3 years, the owners were so disappointed with the quality of work that they decided to bring a law suit against FD and his company for breach of contract. However, they needed sound reasons upon which to base their legal claims against FD, were the case to go to court. One of the owners, being an engineer, decided to consult the Code of Ethics for Engineers to gain insight into what may be substantial…
For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years A -15,000 -1,600 3.000 (a) = = -10000 (b) = 13200 (c) =6000 (a) = -10000 (b) = -1800 (c) = 4200 3 (a) = -10000 (b) = 13200 (c) = 4200 (a) = -10000 (b) = -1800 (c) = 3000 B -25,000 -400 6.000 6
there are three machines in the mechanicle angineering lab A ,B , and C and need to be evaluted economically, machine A has first cost of $4500,an annual operating cost(AOE) of $900, a salvage value of $200 and a service life 4 year. machine B has first cost of $3500, an annual operating cost(AOE) of $700, a salvage value of $350, and a service life 4 year. machine C has first cost of $6000, an annual operating cost(AOE) of $50, a salvage value of $100 and a service life 8 year. which machine should be selected ? the MARR is 10% per year. (a) machine A (B) machine B (c) machine C (d) none
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Discuss the importance of alternative identification in the engineering economic process.
ChemCo Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproofanything. Over a 5 year period, the costs associated with the pilot test product line were as follows: first cost of $43,000 and annual costs of $18,000. Annual revenue was $40,000 and used equipment was salvaged for $4,000. What rate of return did the company make on the product?
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