Answered: company uses an interest rate of 12%,…

company uses an interest rate of 12%, which is the best alternative? Use NPW to make your decision. (Note: Consider the least comm

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

An engineering firm has identified five ways to cut costs in its main office. Only one of the options can be implemented, however, since each involves significant training time for staff engineers. Data are provided in the table. Each option has a lifetime of seven years, and the firm sets a MARR at 15%. Option A B C D E Capital cost ($ million) 2.713 0.375 1.650 0.088 0.950 Annual cost ($ million/yr 0.093 0.275 0.132 0.147 0.228 Annual benefit ($ million/yr) 0.890 0.288 0.841 0.312 0.505 a) Solve by present worth analysis. b) Solve by annual cash flow analysis. c) Solve by incremental benefit-cost ratio analysis. d) Solve by an incremental rate of return analysis using the full detailed procedure
Assume that you are considering to buy a Toyota Corolla automoble. You need to select one of the Diesel and Gasoline option. The related information is given in the following table. The car will be used for 5 years and then it wll be sold. What is the annual average distance that makes Diesel and Gasollne option equivalent (i=10%). Diesel Gasoline Price (TL) Insurance (TL/year) Fuel cost (Lt/TL) 94000 78000 700 700 4.44 5.16 Fuel consumption (Lt/km) Salvage value after 5 years (TL) 0.042 0.058 70000 58000 Select one: a. 17000 O b. 7000 O c. 27000 O d. 37000 e. 12000 f. 19992
Please provide a clear and complete solution. Answer fast for I have 30 minutes left. Thank you very much.
3
Give typing answer with explanation and conclusion
Please do fast ASAP
Determine the minimum cost life (in years) of an equipment for which the marginal costs are given in table below. Use an interest rate of 10%. Year 1 2 3 4 5 6 Marginal 18,000 16,000 19,000 20,000 22,000 24,000 Cost , $ Answer: The minimum cost life of an equipment is year(s).
Chrysler is considering a cost reduction program. the suppliers must reduce the cost of the components that they furnish to Chrysler by 4% each year. program setup $ 13,500,000. the PW if the program is approved is $ ___ million. rn
A flood control pumping station is being designed. Three possible pumping scheme are proposed and the relevant costs are shown in Table Q 2 What is the most economical range of pumping times in hours'year for each scheme? Figure Q2 shows the frequency of pumping demand. What is the most economical scheme? The cost of capital may be taken as 20%. Table Q 2 Costs of alternative scheme Scheme A в Cost of pumps (RM) Life (years) 120,000 180,000 230,000 15 15 20 5, 000 220,000 5, 500 200 ,000 5, 500 Maintenance per annum (RM) Cost of pipes (RM) Life (years) Cost of pumping (RM/hour) 150, 000 20 20 20 50 80 80 10% 30% 40% 20% 1000 2000 3000 4000 5000 Annual pumping hours Frequency of pumping
7
You own an apartment complex with 85 bedroom units. Each unit rents for $1250/mo. Annual costs to operate the complex is $1M. If the vacancy rate is 5%, what profit do you earn per year?
A jewelry firm buys semiprecious stones to make bracelets and rings The supplier quotes a price of S8.30 per stone for quantities of 600 stones or more, S8.70 per stone for orders of 400 to 599 stones, and $0.20 per stone for lesser quantities The jewelry firm operates 102 days per yea. Usage rate is 20 stones per day, and ordering costs are 540. The carrying cost is $3 per year for each stone 1) What is the candidate order quantty at the unit price of 50 207 (Round your answer to the nearest whole number) 2) What is the candidate order quantity at the unit price of $0.707 (Round your ansewer to the nearest whole number) 3) What is the candidate order quantity at the unit price of $8.307 (Round your answer to the nearest whole number.) 4) What order quantity is optimal the intent in to mnimize total annual conts? Round nteredmate calcuations to the nearest whole numbers before compuling the conesponding total annual costs (Round your answer to the nearest whole number 5) What is the…