Fnd the present worth of earthmoving equipment that has a first cost today of $143.000, an annual operating cost of $56,000, and a salvage value of 20% of the first cost after S yees, these estimates being in future dollars. Assume that the real interest rate is 12% per year and that infution has averaged 6% per yea Solve with infation ( not accounted for and accounted for. The present worth wth infistion not accounted for is $O. bị The present worth wth inflation accounted for is S

Fnd the present worth of earthmoving equipment that has a first cost today of $143.000, an annual operating cost of $56,000, and a salvage value of 20% of the first cost after S yees, these estimates being in future dollars. Assume that the real interest rate is 12% per year and that infution has averaged 6% per yea Solve with infation ( not accounted for and accounted for. The present worth wth infistion not accounted for is $O. bị The present worth wth inflation accounted for is S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mechanical engineer at Company B is considering five equivalent projects, some of which have different life expectations. Salvage value is nil for all alternatives. Assuming that the company’s MARR is 13% per year, determine which should be selected (a) if they are independent, and (b) if they are mutually (c) Explain why your selection in part (b) is correct. First Cost, $ Net Annual Income, $/Year Life, Years A -20,000 +5,500 4 B −10,000 +2,000 6 C −15,000 3,800 6 D −60,000 +11,000 12 E −80,000 +9,000 12
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(2) If the initial investment on the equipment is 25000 and it will have a salvage value of 5000 at the end of 5 years. It will save 8000 per year for the study period. Is it worthwhile to install the equipment? Justify it by using Future Worth (FW) formulation when MARR is 20%
Annual thermal loss through the pipe lines of a factory is estimated to be $412 in terms of wasted energy. A new anti-heating technology can reduce the energy loss by 93% and costs for $1232. Although this new technology has no salvage value but it helps the factory to save much energy for upcoming 8 Years. Identify the present worth of the entire investment if the market rate is 10%.
A4 Please complete the things I have not filled out. I believe the best way to complete this is using excel. Also make sure to do the part that says to perform the incremental IRR analysis for the remaning alternatives (The part that has The IRR delta (C - A = ?? %). Thank You!
An investment of P200,000 can be made in a project that will produce a uniform annual revenue of P145,000 for 5 years and then have a salvage value of 10% of the investment. Out-of-pocket costs for operation and maintenance will be P60,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 22% before income taxes. Is this a desirable investment? What is the payback period of the investment? Compute the rate of return. What is the net annual profit using annual worth method? What is the net present worth of net cash flow? The rate of return is [ Select ] [ Select ] 26.87% 25.65% 26.65% 24.87% The net annual profit is [ Select ] [ Select ] P9,742.93 P10,742.93 P11,742.93 P12,742.93 The net present worth of net cash flow is [ Select ] [ Select ] P27,900.25 P28,900.25 P26,900.25 P30,900.25 Is this a desirable investment? [ Select ] [ Select ] Yes No The payback period is [ Select ] Select ] 1.33 2.01 3.20 1.87
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. Compare the alternatives shown below on the basis of a future worth analysis, using an interest rate of 18% per year. P Q First cost, $ - 23,000 -30,000 Annual operating cost, $ per year Salvage value, $ Life, years -4,000 -2,500 3,000 1,000 3 6
Please solve this manually step by step. Please don't solve it in Excel. I need a manual step-by-step.
Pleasee solve with clear explantion so I can understand, engineering econ