Given two machines.Machine AMachine BFirst costP9,000P16.000Salvage value3.000Annual operation4,0003,400Annual maintenance1.5001.300Taxes and insurance4%4%Life years1015Money is worth at least 16%.Determine the following:Machine A: Total Annual Cost - P 5860.00Machine B: Total Annual Cost P 5340.00Annual Savings-P 520.00Rate of return on additional investment - 7.43

To find: Total annual cost of machine A: Machine A: Annual operation + Annual of maintaince +…

Answered: Given two machines, Machine A Machine B…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The management of an electronics manufacturing firm believes it is desirable to automate its production facility. The automated equipment would have no salvage value at the end of a 10-year life. The plant engineering department has suggested eight mutually exclusive alternatives. If the firm expects a 12% rate of return, which plan, if any, should it adopt? Plan Initial Cost (thousands) Net Annual Benefit (thousands) 1 $265 $51 2 220 39 3 180 26 4 100 15 5 300 57 6 130 23 7 245 47 8 165 33 a. Recommendation: Plan 8, with a net present worth of $14.07 thousand O b. Recommendation: Plan 3, with a net present worth of $33.09 thousand O c. Recommendation: Plan 5, with a net present worth of $38.45 thousand O d. Recommendation: Plan 1, with a net present worth of $23.16 thousand
You Answered Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Correct Answers Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 1000 300 10% of capital cost 400 5,094 (with margin: 5) 200 20 7 What is the NPV of the project with year 15 as the base year? (your answer must be rounded off to the nearest dollars, i.e., no decimal places)
Amanda and Blake have found a house, which owing to a depressed real estate market costs only $201,500. They will put $22,000 down and finance the remainder with a 30-year mortgage loan at 3% interest (compounded monthly). (a) How much is their monthly loan payment? (b) How much interest will they pay in the second payment? (c) They will also have the following expenses: property taxes of $2100, homeowners’ insurance of $1625, and $290 mortgage insurance (in case one of them dies before the loan is repaid, a requirement of the bank). These annual amounts are paid in 12 installments and added to the loan payment. What is their full monthly cost? (d) If they can afford $1200 per month, can Amanda and Blake afford this house?
what is the formula Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
EOY 0 1 2 3 4 5 Cash Flow -200 80 50 60 70 150 for salvage value The payback period with 10% interest for the above transaction will be between year 4 & year 5 ○ True ○ False
10- A project needs $10000.00 expenditure at the end of 1st year and another $10000.00 at the end of 5th year. If the interest rate is 7%, what is the Equivalent Uniform Annual Cost (EUAC) of this project in 5 years? a) $4210.00 b) $1710.03 c) $4018.50 d) $2001.04
Two machines X and Y below are being considered for purchase. Machine X Machine Y Initial Cost Uniform annual benefit 200 1200 100 300 Salvage value Life, year 150 3 160 6 If the MARR is 5% which machine should be bought? Machine Y Machine X
No Excel please, need help, thank you
2) Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a- Future worth analysis. b- Annual worth analysis Machine R Machine S First cost, $ -250,000 -370,500 Annual operating cost, $ per year Salvage value, $ Life, years -40,000 -50,000 20,000 30,000 3 5
Please give correct answer
1 Uniform Annual Cash Flow An engineer has an Huct uating fut ure budget for the maint enance of a particular machine. During cach of the first 5 years, $10,000 per year will he budget ed. During the second 5 years, the annual budget will be $15,000 per year. In addition, $5000 will be budgeted for an overhaul (major repair) of the machine at end of the 4th year, and again at the end of the 8th year. What uniform annual expenditure (EUAC) would be equivalent, if interest rate is 8% per year?
3 If a project schedule is accelerated, it is possible to complete the project in B-months rather than A-months. This would allow the developer an additional profit of $X per month over the saved time. The cost of acceleration is an extra $Y per month over the B-months of construction. If the interest rate for interim financing is C%, should the project be accelerated? A= B= C= X= Y= PW of savings PW of costs 25 months 19 months 9% $17,700 $4,700 Should the project be accelerated? Try Again Try Again What is the break-even level of increased monthly costs? Try Again

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