Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year.AlternativeFirst cost, $Annual operating cost, $ peryearSalvage value, $Life, yearsM-175,000-50,0008,000N-650,000-15,0001,000,000coThe capitalized cost for alternative M is $-[ ], and the capitalized cost for alternative N is $-.The best alternative selected on the basis of their capitalized costs is alternative (Click to select): 1.

The Minimum Attractive Rate of Return (MARR), additionally recognized as the hurdle charge or…

Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year. Alternative First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years M -175,000 -50,000 8,000 N -650,000 -15,000 1,000,000 00 The capitalized cost for alternative M is $-[ , and the capitalized cost for alternative N is $-[ The best alternative selected on the basis of their capitalized costs is alternative [(Click to select):

Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year. Alternative First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years M -175,000 -50,000 8,000 N -650,000 -15,000 1,000,000 00 The capitalized cost for alternative M is $-[ , and the capitalized cost for alternative N is $-[ The best alternative selected on the basis of their capitalized costs is alternative [(Click to select):

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A professional photographer who specializes in wedding-related activities paid $49,000 for equipment that will have a $2000 salvage value after 5 years. He estimates that his costs associated with each event amount to $65 per day. If he charges $300 per day for his services, how many days per year must he be employed in order to break even at an interest rate of 8% per year? The number of days required for break even is determined to be per year.
The MARR is 7% per year, capital investment is $118,864, annual expense is $30,127, annual revenue is $89,754, salvage value is $18,093, The study period is 10 years. What is the AW?
The PW-based relation for the incremental cash flow series to find A/* between the lower first-cost alternative X and alternative Y has been developed. 0=-38,000+9000(P/A,Ai*,10) + (-2000 (P/F,Ai*,10)) Determine the highest MARR value for which Y is preferred over X. Any MARR value less than % favors Y.
The PW-based relation for the incremental cash flow series to find A/* between the lower first-cost alternative X and alternative Y has been developed. 0= -38,000 + 9000 (P/A,Ai *,10) + (-5000(P/F,Ai*,10)) Determine the highest MARR value for which Y is preferred over X. Any MARR value less than % favors Y.
The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to:
For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. An equipment has a first cost of $200,000, an annual operating cost of $50,000 and a salvage value of 25% of the first cost after 5 years; these estimates being in future dollars. Determine the present worth, assuming an interest rate of 10% and an average inflation rate of 4%.
The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: = 10% per year 5 6 7 8 9 10 11 2 3 A= $2,000 PO=S30,000 C-55000 (Recurring every 5 y ears) C=55000 (Recurring every 5 years) Captalized Cost= ?
A new antitheft system incorporating MEMS technology is being separately evaluated economically by three engineers at Dragon Technologies. The first cost of the equipment will be $90,000, and the life is estimated at 6 years with a salvage value of $9000. The engineers made different estimates of the net savings that the equipment might generate. Jacob made an estimate of $9,000 per year. Susan states that this is too low and estimates $18,000, while Tyler estimates $21,000 per year before tax. If the MARR is 8% per year, use PW to determine if these different estimates will change the decision to purchase the equipment. The present worth of the pessimistic estimate is $ The present worth of the most likely estimate is $ The present worth of the optimistic estimate is $ The equipment purchase by the pessimistic estimate is not justified The equipment purchase by the most likely estimate is not justified The equipment purchase by the optimistic estimate is justified
ABC Beverage, LLC, purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The finish on the anodized aluminum surface is produced by mechanical finishing technologies called brushing or bead blasting. Engineers at Wald are switching to more efficient, faster, and cheaper machines to supply ABC. Use the estimates and MARR = 8% per year to select between the two alternatives. Brush Alternative Bead Blasting Alternative P $-400,000 $-400,000 n 6 years large Salvage Value $50,000 no value AOC Nonlabor $-60,000 in year 1, decreasing by $2500 annually starting in year 2 $-70,000 per year
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An IE works in the automation department of a surgical equipment manufacturing company that produces specially ordered equipment for hospitals. To upgrade the quality of the assembly process of the camera used in laparoscopic surgery probes, two approaches are available: make and buy. The make alternative has an initial equipment cost of $175,000, a life of 5 years, a $25,000 salvage value, a processing cost of $3,000 per camera, and an M&O cost of $90,000. The buy alternative requires contracting the assembly operation externally at a cost of $7,250 per camera. If the MARR is 12% per year, how many cameras per year must be assembled to justify the make alternative? 27 cameras must be assembled per year to justify the make alternative.