Multiple Choice$40,560.$23,160.$72,432.$58,950. Following cash flows for alternatives X and Y at an interest rate of 10% per year.Machine X Machine YInitial cost, $-146,000-220,000AOC, $/year-15,000 -10,000Annual revenue, $/year80,00075,000Salvage value, $10,00025,000Life, years36In comparing the alternatives on a present worth basis, the PW of Machine X is closest to

Step 1: Given Value for Calculation Initial Cost = i = $146,000Annual Operating Cost = aoc =…

Answered: Following cash flows for alternatives X…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the total present worth of each alternatives? Use MARR of 20%
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Example A company is considering two types of equipment for its manufacturing plant. Pertinent data are as follows: Freeze Type A Type B First cost P200,000 P300,000 Annual Operating Cost P32,000 P24,000 D Annual Labor Cost P50,000 P32,000 Insurance and Property Taxes 3% 3% Payroll Taxes 4% 4% Estimated Life TO 10 If the minimum required rate of return is 15%, which equipment should be selected?
In comparing the machines on a present worth basis, the present worth of machine X, the cost of money is 10% per year, is closest to Machine X Machine Y Initial cost, $ -66,000 -46,000 Annual cost, $/year Salvage value, $ Life, years -10,000 -15,000 10,000 24,000 3. $-103,908 $-87,840 None of the answers S-65,270
For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ АОС, $/year Salvage value, $ 3,000 Life, years B -15,000 -25,000 -1,600 -400 6,000 3 4 O (a) = -10000 (b) = -1800 (c) = 1200 %3D !3! O (a) = -10000 (b) = 13200 (c) = 4200 !3! %3! O (a) = -10000 (b) = 13200 (c) =6000 %3! %3D O (a) = -10000 (b) = 13200 (c) = 13200 %3D
QUESTION 8 Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be selected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,397,151 534,579 Annual operating cost, $ per year 90,383 32,000 Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 4 8 EGN 3212 - Eco PW for Process A-
am. 122.
Required information A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ Equipment replacement cost in year 2, $ Annual operating cost, $/year Salvage value, $ Life, years -800,000 -300,000 -850,000 250,000 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 $-[
Economic Study Methods
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Machine Initial cost, $ Annual cost, $/year Salvage value, $ Life, years O-$87,840 O-$103,910 The estimates for the machines are for two mutually exclusive alternatives. The co of money is 10% per year. The present worth of Machine X is closest to: O $114,310 $65.270 O X -66,000 -10,000 10,000 At 6 Y -46,000 -15,000 24,000 3
M2.

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