Engineer Salem is faced with a decision to select one of the two machines. The cost and revenues are shown in the table. Machine B -100,00 50,000 80,000 Machine A -80,000 50,000 40,000 20,000 1 2 3 The machines will be needed for very long time. In the future, prices and benefits from the two machines will be almost the same. The company's MARR is 10%. From annual equivalent point of view, which machine Salem should select? They are indifferent Machine A Machine B Some assiumptions are need before the problem can be solved

Engineer Salem is faced with a decision to select one of the two machines. The cost and revenues are shown in the table. Machine B -100,00 50,000 80,000 Machine A -80,000 50,000 40,000 20,000 1 2 3 The machines will be needed for very long time. In the future, prices and benefits from the two machines will be almost the same. The company's MARR is 10%. From annual equivalent point of view, which machine Salem should select? They are indifferent Machine A Machine B Some assiumptions are need before the problem can be solved

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Motor A and B is providing 150hp and it is being used for 10 hours per day, 250 days in a year if the motor is using the electricity. Additional cost for both motors is the annual maintenance cost worth 1200 and other manufacturing overhead costing 550 per month. Motor A has an original price of 50,000 while 45000 for Motor B, and both have the salvage value of 3000 after 5 years. Machine efficiency is 92% and 90% respectively.A. How much is the electrical cost if the money is worth 15%? Electrical cost = pesos ( 2 decimal places ) B. With the same initial cost, salvage value, expected life, number of working days per year, annual maintenance cost and manufacturing overhead. How much is the fuel cost if the interest rate is 10% compounded annually if motor A needs to be refilled by 2L/ output while motor B requires a 3L/output, and the target output per day is 10 outputs?
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Engineering Economics 0006 Please show step by step solution
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5- Year SV O&M 15,000 1000 12,000 1500 9,000 The table above lists salve value (SV) and operating and maintenance (O&M) cost of an asset through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements 3 2000 is correct (choose the closest answer)? a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $6,500 b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $7,048 c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $7,048 d) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $6,000
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Use the formula in getting EUAC method when comparing.
Y6
The data provided by a company for the year 2021 - 2022 to carry out Break Even Analysis. Provide the results, complete analysis and suggestions. The data is as follows: The fixed cost of the year is 80000.0 R.O The estimated sales are 400000.0 R.O Material Cost / unit 10.0 R.O Production cost / unit 1S 20.0 R.O Transportation & other Misc Cost / unit (Approx) 5.00 R.O Marketing and advertisement cost / unit 3 R.O Each unit is sold at price 50.0 R.O 1. Construct the B.E.P chart on a graph sheet and indicate, B.B.P, M.o.s. 2. Indicate B.E.P & M.o.S after the improvement measures has been taken (With different colours). 3. Determine the profit before and after the measures taken.