Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction)properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using aMARR of 17.00% per year, which alternative has the lower present worth? (Include a minus sign if necessary.)MethodFirst CostDDM$-220000LS$-420000M&O Cost, per YearSalvage Value$-50000$6000Life2 yearsThe present worth for the DDM method is $The present worth for the LS method is $The (Click to select) method is selected.(Click to select)DDMLS$-15000$250004 years

Answered: Dexcon Technologies, Inc., 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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Airodyne Wind, Inc. has wind tunnels that can operate vertically or horizontally for evaluating the effects of air flow on a component’s PCB response and reliability. The company expects to build a new tunnel that will be outfitted with multiple sensor ports. For the estimates below, calculate the equivalent annual cost of the project. First cost, $ −800,000 Replacement cost, year 2, $ −300,000 AOC, $/year −950,000 Salvage value, $ 250,000 Life, years 4 Interest rate, % 10
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Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $120,000. Annual maintenance expenses are expected to be $6,650 for the first 10 years and $10,000 each year thereafter upto 25 years. With an interest rate of 10% per year, what is the present worth cost of this project? Choose the closest answer below. OA. The present worth cost of the project is $251,632. OB. The present worth cost of the project is $271,133. OC. The present worth cost of the project is $236,922. OD. The present worth cost of the project is $190,186.
Army Research Laboratory scientists developed a diffusion-enhanced adhesion process which is expected to significantly improve the performance of multifunction hybrid composites. NASA engineers estimate that composites made using the new process will result in savings in space exploration projects. The cash flows for one project are estimated. Determine the rate of return per year. Year, t Cost ($1000) Savings ($1000) 0 −210 — 1 −150 — 2–5 — 100 + 60(t − 2)
Machine D E First cost, $ −62,000 −77,000 AOC, $ per year −15,000 −21,000 Salvage value, $ 8,000 10,000 Life, years 4 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors.
A large textile company is trying to decide among three alternatives of sludge dewatering g, processes. The costs associated with these alternatives are shown below. Alternative Y will need an upgrade of $9700 at the end of year 2. At the end of year 2, alternative Z would be replaced with another alternative Z having the same installed and operating costs. If the MARR is 14% per year, which alternative should be chosen? \table[[Alternative,x,Y,Z 6) A large textile company is trying to decide among three alternatives of sludge dewatering processes. The costs associated with these alternatives are shown below. Alternative Y will need an upgrade of $9700 at the end of year 2. At the end of year 2, alternative Z would be replaced with another alternative Z having the same installed and operating costs. If the MARR is 14% per year, which alternative should be chosen? Alternative X Y Z Installed costs $68,500 $48,500 $33,500 Annual operating costs. $6000 $4000 $5000 Overhaul cost in year 2…
please provide correct answer it would great help
Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. \table[[\table[[Insulation], [ Thickness]], Installed Cost, \table[[Annual Savings in], [ Heat Loss]], Life of Insulation], [2cm, $20,000, $6,900 per year,4 years], [3cm, $35,000, $9,000 per year, 6 years]] The MARR = 10% per year. The study period is 12 years. Draw the cash flow diagram for each alternative over the entire study period. Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. Insulation Thickness 2cm Installed Cost $20,000 $35,000 Annual Savings in Heat Loss $6,900 per year $9,000 per year Life of Insulation 4 years 6 years 3cm = The MARR 10% per year. The study period…
A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ −900,000 Equipment replacement cost in year 2, $ −300,000 Annual operating cost, $/year −950,000 Salvage value, $ 250,000 Life, years 4 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors. The equivalent annual cost of the project is $− . Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The survey firm of Layer, Anderson, and Pope (MAP) LLP is considering the purchase of a pieceof new GPS equipment. Data concerning the alternative under consideration are presented below.First Cost $28,000Annual Income 7,000Annual Costs 2,500Recalibration at end of Year 4 4,000Salvage Value 2,800If the equipment has a life of eight years and MAP’s minimum attractive rate of return (MARR) is5%, what is the annual worth of the equipment?
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A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5years. Electrical cost per kWh is P1.25. Calculate the annual savings in terms of electrical savings if MARR is 15% per year.

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