Hollingsworth needs a new precision grinding wheel. If 12% is the acceptable return fo Hollingsworth, determine the present worth of its best alternative Cost Useful life Annual Cost Salvage Value $80,000 5 years $12,000 $10,000
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- A solid-waste recycling plant is considering two types of storage bins. Use ROR evaluation and an MARR of 46% per year to determine which should be selected. Storage Bin First Cost, $ AOC, $ per Year Salvage Value, $ Life, Years P -24,000 -4000 1800 3 Q -35,000 -2000 2600 6 Since A/* is (Click to select) MARR of 46%, (Click to select) should be selected.Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of return analysis to determine which alternative should be selected? A B D E 4000 2000 1000 9000 639 410 117 785 15% 20% 10% 6% Cost Annual benefit Rate of return C 6000 761 11%Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,450,000 $-700,000 $120,000 8 years Push System $-2,550,000 $-660,000 $80,000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 12% per year. The salvage value for the push system is determined to be $ 2351611.32 in $1000 units.
- . Calculate the present worth of a machine which costs $105000 initially and has a 10 year life with a $20000 salvage value. The operating cost of the machine is expected to be $6000 in year 1(end_of_year) and $6600 in year 2, and amounts increasing by the 10% through its 10-year life. Use an interest rate of 12% per year. Please don't used excel I again says don't used excelS Required information A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $16,800 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,900. A new power line will cost $24,500 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. At an interest rate of 10% per year and using an AW analysis, which alternative should be selected? The annual worth of installing solar cells is $- a new power line is $- The alternative to be selected is (Click to select) and the annual worth of installingIPS Corp. will upgrade its package-labeling machinery. It costs $850,000 to buy the machinery and have it installed. Operation and maintenance costs, which are $11,000 per year for the first 3 years, increase by $1000 per year for the machine’s 10-year life. The machinery has a salvage value of 12% of its initial cost. Interest is 25%. What is the future worth of cost of the machinery? dont use excel. dont write answer in a paper becouse of handwriting. thanks
- cost maintenance life a $3000 $100/year 5 years $250 after 5 year b %14000 $80/year 15 years $600 after 15 year salvage interest= 5% need the best option using present worth and future worth with and without salvage value.A solid-waste recycling plant is considering two types of storage bins. Use ROR evaluation and an MARR of 18% per year to determine which should be selected, Storage Bin First Cost, $ AOC, $ per Year Salvage Value, $ Life, Years -22,000 -4000 1800 3 -35,000 -2300 2600 6 Since Alis (Click to select) MARR of 18%, [Click to select) should be selected.Littrell's Nursery needs a new irrigation system. System one will cost $145,000, have annual maintenance costs of $10,000, and need an overhaul at the end of year six costing $30,000. System two will have first year maintenance costs of $5,000 with increases of $500 each year thereafter. System two would not require an overhaul. Both systems will have no salvage value after 12 years. If Littrell's cost of capital is 4%, using annual worth analysis determine the maximum Littrell's should be willing to pay for system two.
- # 7 Use Excel - Be organized. Use Excel formulas/functions. A new high efficiency motor is being considered for a large compressor. It will cost $22,000 but it will save $8250 per year in O&M. The useful life of the motor is 8 years. The company has a 3-year discounted payback period, and a MARR of 15%. (a) Should the motor be bought?Build modelA new engineer is evaluating whether to usea higher-voltage transmission line. It will cost $245,000 more initially, but it will reduce transmission losses. The optimistic, most likely, and pessimistic projections for annual savings are $21,000, $14,000, and $9,000 respectively. The interest rate is 7%, and the transmission line has a life of 30 years. (a) What is the present worth for estimated value of each scenario? (b ) What is the expected (mean) Present Worth?You have been asked to perform a sensitivity analysis on a plant modernization plan. The initial investment is $30,000. Expected annual savings is $13,000. Salvage value is $7,000 after a 7 year planning horizon. The MARR is 12%. Determine the AW if the annual savings change by the following percentages from the initial estimate: b. -80%c. -60%d. -40%e. -20%f. +20%g. +40%h. Determine the percentage change in net annual savings that causes a reversal in the decision regarding the attractiveness of the project