Question 35If it is said that the economic life of a challenger is four years it means thatO a. the payback period is four years.O b. the equivalent annual cost in year four is at its minimum.O , four years are required for the challenger to recover its operating and maintenance costs.O d. four years are required for the challenger to recover its initial investment.

The estimated span of time during which an item will be useful to the typical owner is known as its…

Ifit is said that the economic life of a challenger is four years it means that_ Oathe payback period is four years. O b. the equivalent annual cost in year four is at its minimum. Oc four years are required for the challenger to recover its operating and maintenance costs. Od. four years are required for the challenger to recover its initial investment.

Ifit is said that the economic life of a challenger is four years it means that_ Oathe payback period is four years. O b. the equivalent annual cost in year four is at its minimum. Oc four years are required for the challenger to recover its operating and maintenance costs. Od. four years are required for the challenger to recover its initial investment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. The physical life is always greater than all the other "life" factors under replacement analysis. 6. If breakeven analysis is conducted with PW analysis for different MEAS, it doesn't guarantee that the fastest alternative to reach its breakeven point has also the highest equivalent worth.
Please answer as quickly as possible A project is currently under review. An initial investment of $87,000 would be necessary for equipment. The profit is expected to be $21,000 each year, over the 6 year project period. The salvage value of the equipment at the end of the project period is projected to be 17,000. Assume a MARR of 9%. Find an ERR for this project (exact value or smallish interval). (Be careful with +/- signs) (if your approach requires a starting point, use 12%)
An equipment is bought for $9,000 and sold at the end of its service life for $800. If the service period is 10 years and the MARR is 10%, then the minimum annual savings that this equipment must yield for it to break even is closest to? a) $1,414 b) $1,701 c) $1,312 O d) $1,514
A https://bbhosted.cuny.edu/webapps/assessment/take/launch.jsp?course_assessment_id%3_1840433_18&icourse_id=_1973374_1&content_id=_56338622_18is Remaining Time: 33 minutes, 41 seconds. v Question Completion Status: Figure Terice 10 1s 6. 6. 10 20 30 40 50 60 70 80 quantity Refer to Figure. A price floor of $ 8 in this market would result in O a. the quantity of the good demanded decreases by 10 units. O b. the quantity of the good demanded increases by 10 units. O c. the quantity of the good demanded decreases by 30 units. O d. the buyer's total expenditure to decrease by $20. QUESTION 2 Price controls O a. helps only buyers. O b. helps only sellers. O C. can help both buyers and sellers. O d. helps neither buyers or sellers.
If the annual worth of the project is -7500 (negative 7500), its annual benefits are 2000 yearly, the operating costs are 500 yearly, and the project runs for 18 years, if i=12% then the first cost of this project is most nearly 55078 no correct answer 64418 74365 52344 O 65265
A machine costs $500,000 and will provide a benefit of $100,000 per year for 10 years. At the end of the 10th year, the machine has a salvage value of $10,000. At an interest rate of 8%, the NPW of the machine is most nearly: O $1.160,000 O $671.000 $490,000 O $176.000
Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2 M&O cost Retention Yr. Market Value per year O First Cost) 55,000 1 35,000 45.000 2 20,000 47.500 3 15,000 50.000 4 2.000 53.500 O 6a256 O 69209 O R476 O 67.854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. O 66.765 O 64332 O 67.428 O 66256 D Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 01 04
Quèstion 12 A company has an export transaction with the payment term D/P T/R at 15 days after sight. Assuming the documents mailing period is 7 days, and the date of collection is July 1st (without considering the reasonable working hours of the bank). The date of payment is O July 1st July 8th O July 15th O July 22nd
QUESTION 11 As a general decision criterion, the PW method provides a more direct solution to a variety of replacement problems, with either an infinite or a finite planning horizon, or a technological change in a future challenger. O True O False QUESTION 12 Engineering Economy deals with the concepts and techniques of analysis useful in evaluating the worth for systems, products, and services in relation to their costs. It is used to answer many o different questions like; Which engineering projects are worthwhile? Which engineering projects should have a higher priority? And How should the engineering project be designed? O True O False QUESTION 13 Cash Flow Approach Treat the proceeds from sale of the old machine as a down payment toward purchasing the new machine. O True O False QUESTION 14 We should use the respective economic service lives of the defender and the challenger when conducting a replacement analysis. O True O False
2. Three mutually exclusive design alternatives are being considered. The estimated sales and cost data for each alternative are given on the next page. The MARR is 20% per year. Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on fixed and variable costs. Determine which selection is preferable based on AW. State your assumptions. A в Investment cost Estimated units 60,000 20,000 $50,000 18,000 CLA to be sold/year Unit selling price, $/unit Variable costs, $/unit Annual expenses (fixed) Market value Useful life $4.40 $4.10 $1.00 $1.40 $1.15 $15,000 $30,000 $26,000 $20,000 10 years $15,000 10 years B PUBLICATIO 10 years
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A9. calculate the AW and PW of both project A and project B