M12 In a DBOMF contract arrangement, the contractor is responsible for managing the cash flow to support projectimplementation; not the funding (capital funds) aspects. In DBOM contracts, this management responsibility is notplaced on the contractor.Select one:O TrueO FalseAn argon gas processor has a first cost of $20,000 with a $5,000 salvage value after 5 years.Find D3 and BV3 for year 3?Use: Dt-(B-S/n and BVt-B-tDtO aD3-$3,000 and BV3-$11,000O b. D3-$2,000 and BV3=$11,000Machines that have the following costs are under consideration for a robotized welding process. Using an interest rateof 10% per year, determine which alternative should be selected on the basis of a present worth analysis.Machine XMachine YFirst Cost, $-250,000-430,000AOC, $ per year-60,000-40,00070,00095,000Salvage Value, $Life years36O a. Select Machine XO b. Select Machine Y

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In a DBOMF contract arrangement, the contractor is responsible for managing the cash flow to support project implementation, not the funding (capital funds) aspects. In DBOM contracts, this management responsibility is not placed on the contractor.. Select one: O True False

In a DBOMF contract arrangement, the contractor is responsible for managing the cash flow to support project implementation, not the funding (capital funds) aspects. In DBOM contracts, this management responsibility is not placed on the contractor.. Select one: O True False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

M12

In a DBOMF contract arrangement, the contractor is responsible for managing the cash flow to support project
implementation; not the funding (capital funds) aspects. In DBOM contracts, this management responsibility is not
placed on the contractor.
Select one:
O True
O False
An argon gas processor has a first cost of $20,000 with a $5,000 salvage value after 5 years.
Find D3 and BV3 for year 3?
Use: Dt-(B-S/n and BVt-B-tDt
O a
D3-$3,000 and BV3-$11,000
O b. D3-$2,000 and BV3=$11,000
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 present worth analysis.
Machine X
Machine Y
First Cost, $
-250,000
-430,000
AOC, $ per year
-60,000
-40,000
70,000
95,000
Salvage Value, $
Life years
3
6
O a. Select Machine X
O b. Select Machine Y

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