For the below ME alternatives, which machine should be selected based on the AW analysis. MARR-10% Machine A Machine B Machine C First cost, $ Annual cost, S/year Salvage value, $ Life, years 15000 27,724 10000 8,293 6,000 5,000 4,000 4,000 1,000 Answer the below questions: B-AW for machine B=

For the below ME alternatives, which machine should be selected based on the AW analysis. MARR-10% Machine A Machine B Machine C First cost, $ Annual cost, S/year Salvage value, $ Life, years 15000 27,724 10000 8,293 6,000 5,000 4,000 4,000 1,000 Answer the below questions: B-AW for machine B=

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

For the below ME alternatives, which machine should be selected based on the AW analysis. MARR-10%
Machine B
27,724
6,000
Machine A
Machine C
First cost, $
15000
10000
Annual cost, S/year
Salvage value, $
Life, years
8,293
4,000
4,000
5,000
1,000
Answer the below questions:
B- AW for machine B=
For the below ME alternatives, which machine should be selected based on the AW analysis. MARR 10%.
Machine A
15000
Machine B
Machine C
12,409
30000
First cost, $
Annual cost, $/year
Salvage value, $
Life, years
17,181
6,000
4,000
4,000
5.000
1,000
Answer the below questions:
C- AW for machine C=

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A new machine with a purchase price of $90,021, with transportation costs of $9,593, installation costs of $6,472, and special acquisition fees of $2,612, would have a cost basis of a. $108,698 b. $96,493 Oc. $90,021 d. $99,105
correct answer: 12,490,317
!
Only typed explanation otherwise leave it
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 a MARR of 9% per year, which alternative should be selected? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-100,000 $-30,000 $2,000 3 years LS $-300,000 $-5,000 $15,000 6 years
PC Shopping Network may upgrade its modem pool. It last upgraded 1 year ago, when it spent $114 million on equipment with an assumed life of 4 years and an assumed salvage value of $22 million for tax purposes. The firm uses straight-line depreciation. The old equipment can be sold today for $86 million. A new modem pool can be installed today for $156 million. This will have a 3-year life, and will be depreciated to zero using straight-line depreciation. The new equipment will enable the firm to increase sales by $15 million per year and decrease operating costs by $12 million per year. At the end of 3 years, the new equipment will be worthless. Assume the firm's tax rate is 35% and the discount rate for projects of this sort is 13%. (Enter your answers in millions. For example, an answer of $13,000,000 should be entered as 13. Use minus sign to enter cash outflows, if any.) a. What is the net cash flow at time 0 if the old equipment is replaced? (Do not round intermediate…
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Need ans in 2 min only final ans tell me not calculation
heavy equipment for a certain project and the details are as follows: ITEM: MACHINE A: MACHINE B: First Cost P2,000,000.00 P3,000,000.00 Annual operating P325,000.00 P250,000.00 cost Annual labor cost Insurance and taxes Payroll taxes Estimated life P500,000.00 P320,000.00 4% 10% 12 yrs. 4% 10% 12 yrs. If the minimum ROR is 25%, What is the annual cost of Machine A & B using present worth method?
given the two machine's data
Calculate the conventional benefit-cost ratio for the alternative: Initial Investment 150000 Revenues 50000 Costs 20000 Salvage Value 50000 Useful life 10 MARR 0.1 Select one: a. 1.2114 b. 1.3130 c. 1.4659 d. 1.3681 e. 1.2960
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