Concurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15% -per year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5-year study period, and the estimates below. Was Wilma correct? Equipment Original purchase price, S Current market value, $ Remaining life, years Proposed -42,000 Estimated value in 5 years, $ Salvage value after 15 years, S AOC. $ per year The AW of the defender is $- Wilma (Click to select) correct Current -30,000 15,000 5 7,000 -13,000 T 15 10,000 5,000 -3,000 and the AW of the challenger is $-

Concurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15% -per year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5-year study period, and the estimates below. Was Wilma correct? Equipment Original purchase price, S Current market value, $ Remaining life, years Proposed -42,000 Estimated value in 5 years, $ Salvage value after 15 years, S AOC. $ per year The AW of the defender is $- Wilma (Click to select) correct Current -30,000 15,000 5 7,000 -13,000 T 15 10,000 5,000 -3,000 and the AW of the challenger is $-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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oncurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2 -year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15%-per year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5 -year study period, and the estimates below. Was Wilma correct? \table[[Equipment,Current,Proposed],[Original purchase price, $,-30,000,-42,000
Use the following analyses to select a system based on the cash flows given: a) Conventional payback period b) Discounted payback period, with an MARR of 15% per year c) Present worth analysis, with an MARR of 15% per year, using an LCM analysis period First Cost, $ NCF, $/year Maximum Life, years System 1 12,000 3,000 8 System 2 8,000 1,000 (year 1-5) 5,000 (year 6-10) 10
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EACH QUESTION WILL BE CHECKED AGAINST AI USAGE SO DO NOT RELY ON THEM! CAN YOU ALSO PROVIDE THE DETAILED CALCULATION? THANK YOU!!
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?
Please no written by hand solution Assume that 25 years ago your dad invested $240,000, plus $31,000 in years 2 through 5, and $45,000 per year from year 6 on. Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $45,000 annuity stopped at year 25. The interest rate being 12% per year. The annual retirement amount is determined to be $
5.15
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Concurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15%-per year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5-year study period, and the estimates below. Was Wilma correct? Equipment Original purchase price, $ Current market value, $ Remaining life, years Estimated value in 5 years, $ Salvage value after 15 years, $ AOC, $ per year Current -30,000 15,000 5 7,000 -11,000 The AW of the defender is $- challenger is $- Wilma ((Click to select)) correct. Proposed -40,000 -- 15 10,000 5,000 -3,000 and the AW of the
Equipment needed at Valero Corporation refinery for the conversion of corn stock toethanol, a cleaner burning gasoline additive, will cost $175,000 and have net cashflows of $35,000 the first year, increasing by $10,000 per year over the life of 5 years.Develop a spreadsheet chart that plots AW vs interest rate to show where (what interestrate) the project switches from financially justified to unjustified. Use AW as the verticalaxis of the chart, and interest (i) as the horizontal axis of the chart. Use a range ofinterest rates spanning from 10% to 20%, and use increments of 1%. Label both axesand use a title for the chart.
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