Choose from the two machines which is more economical: Machine A Machine B First Cost P12,000 Р17,000 Salvage Value Annual Operation P2,000 3,000 2,400 Annual Maintenance 1,200 1,000 Taxes and Insurance 3% 3% Life, years 10 15 Money is worth at least 16%

Choose from the two machines which is more economical: Machine A Machine B First Cost P12,000 Р17,000 Salvage Value Annual Operation P2,000 3,000 2,400 Annual Maintenance 1,200 1,000 Taxes and Insurance 3% 3% Life, years 10 15 Money is worth at least 16%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: In Sheridan Company, total materials costs are $37,600, and total conversion costs are $61.560 for…

A: Materials Cost per unit = Total Materials Costs / Number of Units =$37,600/10,000 =$3.76…

Q: Describe the Fundamental Principles in Engineering Economics?

A: Engineering economics uses economic procedures for the purpose of designing evaluation and other…

Q: · Opportumity cost is: Ta) That which we forgo or give up, when we make a choice or a decision. (b)…

A: In the production process, inputs are used to produce the final output. Costs of production are the…

Q: The yariablecosts incured by the business in the curent period per unit of output is: (aDThe average…

A: Marginal input cost (MIC) is the cost of using an additional unit of variable input; restated, it is…

Q: A diesel engine uses Type A filter and high-grade lubricating oil costing $5.50 per liter. With this…

A: Cost is the value of goods and services that producers and consumers purchase.

Q: In the design of a jet engine part, the designer has a choice of specifying either an aluminum alloy…

A: Güven Data: - Weight of aluminium casting / unit = 1.2 kg Cost of making aluminium Casting per kg =…

Q: Given EVM data, estimate the cost at completion of a project using the method "EAC based on combined…

A: Estimate at completion is the tool used by businesses to calculate the cost involved in the…

Q: When the production volume (Q)is(100)units the total costs (TC)is (1500)omani RIyals and fixed costs…

A: The variable cost can be calculated as follows:

Q: 1 Vehicle purchase. A student living in Lower Hutt is considering the purchase of a new vehicle. An…

A: (a) Decision and environment variablesThe decision variables in this problem are the type of vehicle…

Q: Past costs (or sunk costs) are irrelevant in engineering economic analysis, unless they impact…

A: Past costs or the sunk costs are the costs that are borne by the firm in the current year and have…

Q: According to the Descartes' rule, the number of positive i* value for the following cash flow is:…

A: The number of the positive real roots is at most equal to the number of sign changes, according to…

Q: Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $10 million and…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The fixed cost at Sonny Motors is $5765764 annually. The main product has revenue of $84 per unit…

A: Given fixed cost = 5,765,764 P Revenue per unit = 84 $ Variable cost per unit = 43 Units sold =…

Q: Using the Table below, what is the earliest completion time for this project? Activity Predecessor…

Q: 3. A firm uses labor and capital to produce an output. The hourly cost of labor is 10 and the hourly…

A: As per the guidelines, we are allowed to answer the first question only in case of multiple…

Q: What are some examples of "cash cost" in Engineering Economics?

A: Introduction Cash cost is based on the cost concept. It refers to the expenses paid in cash form and…

Q: Question Table Q4 shows information for systems A and B. By using the information provided…

A: - Given information:Output (X1) = X1 units per dayDollar spent (Y1) = Y1 per unit$ spent for a day…

Q: variable costs is RM150, and the total of monthly fixed costs are RM50,000. (i) Determine the…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: What is the total costing based on the following shipment? Dimensions: Weight: 4 pieces, 70 in L x…

A: Origin Pick Up Fee: The first component of the total cost is the origin pick-up fee. This fee is…

Q: Only typed solution

A: The objective of the question is to derive the steady state capital per worker (k) from the given…

Q: A mail carier at the U.S Postal Service works on Sunday delivering high priority letters and…

A: The cost function is the total work that the individual has to do in regards with the units of…

Q: low-cost range for multiple alternatives. variable location fixed cost cost/unit elm 125 .01 ferry…

Q: An engineer has the option of deciding the number of turbines for the power plant he/she works at.…

A: Given : Variable Cost = 10 USD/MW Revenue= 40 USD/MW Fixed Cost - Turbine 1=9600,Turbine…

Q: Identification and analysis of the solutions for SDG 8

A: Sustainable Development Goals (SDGs) are global goals that are aimed at transforming the world. This…

Q: 33. If the average fuel cost is $1.35 per gallon, then the annual fuel cost of driving a car 15,000…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: 8. A 1.25 acre lawn is to be sodded with Cavalier zoysiagrass, which can be delivered at a cost of…

A: The total cost of sodding 1.25-acre lawn = Cost of sodding per square yard * Total square yards

Q: Eng eco. Q2 Consider the following data of a company for the year 1997: Sales = Rs. 1,20,000 Fixed…

A: Fixed Cost: It is the cost that remains constant at every level of output which means it does not…

Q: Help....... Solve Write Company has a maximum capacity of 200,000 units per year. Variable…

A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…

Q: How is an engineering economic decision is more complex andmore significant to the company?

A: Engineering economics is a branch of economics dealing with the use and application of economic…

Q: A buyer placed an initial order with a supplior named Ronco that makes brakn assenblies. The order…

A: Given the costs and the productivity improvement. Calculate the impact of productivity improvement…

Q: A product currently sells for S12 per unit. The variable costs are $4 per unit, and 10,000 units are…

A: The breakeven point is the level of production at which the costs of production equal the revenues…

Q: d) What price will maximize the profit?

A: Suppose a company has fixed costs of $28,000 and variable cost per unit of dollars, where x is the…

Q: data: Fixed Factory Overhead Cost = 50,000 dollars Fixed Selling Overheads Cost = 10,000 dollars…

A: A) The break-even point in terms of sales value Break-Even point (sales dollars) = Total Fixed Costs…

Q: a) Find the Unit Contribution and the Breakeven Quantity. b) Determine the Total Contribution and…

Q: An article has a Selling Price :Rs. 12 Per Unit Variable Cost : 2/3 of SP Fixed Cost :Rs. 40,000…

A: P = 12/unit FC = 40,000 VC = 2/3 * 12 VC = 6/unit Say quantity = Q

Q: Best Ink Printing Co. received an order to print a minimum of 50,000 tickets for a concert. They…

Q: Given that the additional cost to produce an extra unit is 400 – 3x, profit is 700 - 4x – 2x ?, and…

A: Total cost = Variable cost + Fixed cost Fixed cost = RM 25 MC= 400-3x Also MC= ∆TC/∆Q TC=…

Q: An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000…

A: A firm’s rate of return refers to the profit earned on investment. It is calculated as the…

Q: Optimisation of one-variate function 2. The company's profit function is n= 140Q 202-70 2.1 What is…

A: As you mention, subpart 2.4 and 2.5 need to be solved. Given Company's profit function…

Q: Only typed solution

A: The objective of the question is to derive the steady state capital per worker (k) from the given…

Question

SOLVE IT USING

1.) Present Worth Cost Method
2.) Equivalent Uniform Annual Cost Method

Choose from the two machines which is more economical:
Machine A
Machine B
First Cost
P12,000
Р17,000
Salvage Value
Annual Operation
P2,000
3,000
2,400
Annual Maintenance
1,200
1,000
Taxes and Insurance
3%
3%
Life, years
10
15
Money is worth at least 16%

Expert Solution

Step 1

Given:

Machine A: First Cost=P 12000

Machine B: First Cost=P 17000

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

9. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units.Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a toolcosting 640Php, which will be useless after the 8,000 units are finished. The cost of the machineoperator is 10.80Php/hr. if all other costs are identical, which material is more economical?
Consider the accompanying breakeven graph for an investment, and answer the following questions.(a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for x units per year. (c) What is the “breakeven” level of x? (d) If you sell 1500 units this year, will you have a profit or loss? How much? (e) At 1500 units, what are your marginal and average costs?
A cell phone company has a fixed cost of $1.200.000 per month and a variable cost of $21 per month per customer. The company charges $37 5 per month to its cell phone customers. a. What is the breakeven point for this company?
One of the steps in engineering economy study is 4. IDENTIFY AN ECONOMIC MEASURE OF WORTH CRITERION FOR DECISION MAKINGWhat does it mean? Please. Help.
Question 3 low-cost range for multiple alternatives. variable location fixed cost cost/unit elm 125 .01 ferry 50 .03 getty 75 .02 if expected output is 4000, the best alternative if quantity is 7000 is location
all average cost can be calculated by deriving the per unit cost. True or False
I will split this question into two parts per the Q&A guidlines and leave a like for your assistance, thank you.Background:New Pumper system equipment is under consideration by a gulf coast chemical processing plant. One crucial pump moves highly corrosive liquids from specially lined tanks on intercoastal barges into storage and preliminary refining facilities dockside. Beacuse of the variable quality of the raw chemical and the igh pressures imposed on the pump chassis and impellers, a close log is maintained on the number of hours per year that the pump operates safety records and pump componenet deterioration are considered critical control points for this system. As currently planned, rebuild and M&O cost estimates are increased accordingly when cummulative operating time reaches the 6000-hour mark. Information:- First cost: $800,000- Rebuild Cost: $150,000 whenever 6000 cumulative hours are logged. Each rework will cost 20% more than the previous one. A maximum of three…
No written by hand solution
Economic cost is equal to the sum of exiplicit and implicit costs. True/ False
A company estimates it will sell 5000 products in a year. I twould like to make some number N of equally spaced orders of size x units per order so that the total inventory cost (which includes prdering and storage) is minimized. a) If there is a 420 per order fixed cost plus a cost of $9 per unit ordered, and the storage cost per year is $10, find the number of orders and the numbers of units per order so that the goal of minimizing inventory costs is achieved. b) Suppose that the ordering cost doubles to $18 per unit ordered,and that no other chnage is made. Decide whether this should or should not change the solutuon that you foind in part (a), and justify your answer.
Please provide a clear and complete solution. Answer fast for I have 30 minutes left. Thank you very much.
What is the maximum profit for the profit-versus-production function given below? P is profit in dollars and x is units of production. P= $200,000 -0.12 - O (A) $200,000 O (B) $240,000 O (C) $290,000 O (D) $310,000 Remaining Time 4