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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A cost analysis is to be made to determine what, if anything, should be done in a situation offering three "do-something" and one "do-nothing" alternatives. Estimates of the costs and benefits are as follows: End-of- Uniform Useful- Life Benefit Salvage (years) Value Useful First Alternatives Cost Annual Life -$500 $135 -600 100 250 5 -700 100 180 10 4 Use Present Worth Analysis with the Least Common Multiple Method to select the best alternative. Use MARR=6%. (Note: You MUST describe your answers with conversion factor notations and you DON'T NEED TO calculate the values of PW for supporting a decision. Simply describe your selection criterion with PW expressions.) 1.
As an engineer, you have been asked to recommend a new cooling system for a large warehouse. You have narrowed it down to three different systems with the associated costs shown below If the minimum attractive rate of return in 10%, which system would you recommend. Cooling system A В C $250,000 $75,000 $300,000 $60,000 $36,000 $375,000 $80,000 $45,000 9 years Installation costs Annual operating costs Salvage value Lifespan None 5 years 7 years
The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data Useful Life, Years First Cost Salvage Value Annual Benefit M&O M&O Gradient X 17 $2,090,000 $87,000 $396,000 $56,000 $9,000 X-TRUD 13 $2,610,000 $93,000 $534,000 $60,000 $11,000 SUPR-X 11 $2,430,000 $119,000 $638,000 $53,000 $13,000 The company's interest rate (MARR) is 21%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason. Choosing SUPR-X is best because it has the lowest M&O cost in yr1 Choosing SUPR-X is best because it has the highest Annual Benefit Choosing SUPR-X will maximize the EUAB-EAUC; its value is $-127,486 higher than X and $15,650 higher than X-TRUD. Choosing SUPR-X will maximize the EUAB-EAUC; its value is $117,514 higher than X and $126,650 higher than X-TRUD.
Compare three alternatives on the basis of their capitalized costs at /= 8% per year and select the best alternative. Alternative E F G $-460,000 $-30,000 $90,000 4 First Cost AOC, per Year Salvage Value Life, Years $-80,000 $-65,000 $40,000 2 The capitalized cost of alternative E is $ The best alternative is (Click to select) ▼ alternative F is $ $-960,000 $-3,000 $450,000 ∞0 and alternative G is $
The following three alternatives have been developed and costed to improve the efficiency of aircraft engines. Compare the alternatives using capitalized cost and a MARR of 10% per year compounded annually. Alternative Alternative Alternative G First Cost, $ -1,000,000 -3,000,000 -5,000,000 Net income $ per year 325 000 400,000 600,000 Salvage value, S 50,000 70,000 Life, years 4 8.
31. Autobot Systems Inc. Is evaluating three robot proposals for use in its assembly line. Information regarding these proposals are as follows: Robot 1 Robot 2 Robot 3 Initial Cost P2 000 000.00 P3 000 000.00 P1 500 000.00 Annual Operating Cost 150 000.00 200 000.00 100 000.00 Annual Savings 1 200 000.00 1 300 000.00 1 200 000.00 Useful Life, years 3 6 2 Assuming a salvage value of 10% and a 17% MARR, determine which robot should be preferred using AW analysis. (Ans. AT1=P201 367.37; AT2=P296 740.03; AT3=P222 880.18; select robot 2)
Engineering Economy, Chapter 16: Depreciation Methods The manager of a Glidden Paint manufacturing plant is planning to use SL, DDB or MACRS to compare the total depreciation of the first 3 years for a recently purchased mixer that has a first cost of 300,000 QAR, a 5-year recovery period, and a 60,000 QAR salvage value. Find total depreciation of the first three years and the book value at year 3 using SL, DDB and MACRS.
QI\ a contractor want to invest his money in one of projects A or B if you know that the interest rate is 10%, choose the best altemative A or B using net present worth method ? A. B. Initial Investment 120,000 CU 135,000 CU Annual revenue Annual expenses Salvage vahie |Project life Cost of machines replaced every 3 years 15,000 CU\year 10,000 CU year 12,000 CU 12 years 17,000 CU year 11,000 CU year 20,000 CU 6 усars 3500 CU 3000 CU Q2 A company is planning to purchase a new equipment to increase the production and revemies. The cost of the equipment is 451105 CU and the equipment installation cost is 17% of its cost. Find the payback period for this equipment Year 1 Year 2 120,000 CU 130,000 CU 90,000 CU Year 3 Year 4 |100,000 CU Year 5 115,000 CU 90,000 CU Year 6 Q3 \ Machinery costs (60000 CU) and its useful life is (5 year). compute the schedule of depreciation and book value at the end of each year for the machinery by using the Sum of Year Digit method , if you know that the…
I need the solution in handwriting The following are the cost of a system and the useful life is five years. The salvage value for depreciation purpose is equal to 25% of the hardware cost Item Cost Hardware $170,000 Training Installation $18,000 $18,000 a) What is the book value of the system at the end of year three if Straight line method is used? b) Suppose that after depreciation of the system for two years with straight line, the company decides to switch to the decline method for the reminder of the system life (depreciation rate 30%). What is the system Book Value at the end of four years? (
9. A local company is analyzing 5 alternatives for a new machine the information is given in the table below. Option Cost Savings per Year Salvage value FV Vehicle life n A -$10,000.00 $ 2,050.00 $ 500.00 B -$12,500.00 $ 3,405.00 -$15,300.00 $ 3,680.00 -$20,500.00 $ 5,281.50 -$30,125.00 $ 6,785.00 C D E $1,000.00 $3,000.00 $ 5,000.00 $5,000.00 5 5 5 5 5 a) which alternative should be selected without considering salvage value? The company is considering a MARR of 7%. b) which alternative should be selected with considering salvage value? The company is considering a MARR of 10%.
Required information A project has a first cost of $670,000, a salvage value of 27% of the first cost after 3 years, and annual (GI-OE) of $275,000. Assume the company has a Te of 37%. Determine the approximate after-tax rate of return (ROR). The after-tax rate of return (ROR) is determined to be
UJ0 per ycal 101 all assct tmat mialy Cost B28,000, lany Cost $28 Ust $26, has a salvage value of $1500 whenever it is sold, and generates cash flow of $2900 per year. Use factors and a spreadsheet. 8.27 A vibrating sieve shaker in a soil analysis labora- tory has a first cost of $8000 and an expected sal- vage value of $500 when it is sold. A positive cash flow of only $900 per year can be attributed di- rectly to the shaker. (a) Determine the payback period if the required return is 8% per year. (b) If the asset will be in service for an estimated 12 years, should it be purchased? 8.28 You work part time selling mobile phone ads on a OINS commission basis. (a) Using factors and a spread- sheet, determine the number of years you would

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