Las Cruces' Virgin Galactic is considering two materials for certain parts in a reusable space vehicle: carbon fiber reinforced plastic (CFRP) and fiber reinforced ceramic (FRC). The costs are shown below. Which should be selected on the basis of a present worth comparison if MARR = 10% per year? (a) Solve using tabulated factors. (b) (Spreadsheet exercises) Solve using single-cell functions. (c) Using your spreadsheet functions, will the selection change if the estimated life of the CFRP material is 4, rather than 2, years?

Las Cruces' Virgin Galactic is considering two materials for certain parts in a reusable space vehicle: carbon fiber reinforced plastic (CFRP) and fiber reinforced ceramic (FRC). The costs are shown below. Which should be selected on the basis of a present worth comparison if MARR = 10% per year? (a) Solve using tabulated factors. (b) (Spreadsheet exercises) Solve using single-cell functions. (c) Using your spreadsheet functions, will the selection change if the estimated life of the CFRP material is 4, rather than 2, years?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Q7: The costs of fuel for a smelting operation are expected to be $50,000 in year three, $52,500 in…

A: Certainly! Let's break down the calculation of the present worth (PW) for the fuel cost, considering…

Q: A construction company is planning to invest for the purchase of a heavy construction equipment…

A: Alternative 1:Initial cost=2700000Annual savings=525000Salvage value=710000Alternative 2:Initial…

Q: Company B expects to invest $935,000 for one heavy equipment replacement 2 years from now and…

A: A sinking fund is a specialized financial account set up by individuals or organizations to put away…

Q: At 14% per year, A for years 1 through 6 of the cash flows shown below is closest to: (a) $300 (b)…

A: In the given cash flow diagram, there is a uniform gradient series. The cash flow in the first year…

Q: What is the amount of capital that earns simple interest: a)$1,500 at 18% per year in 10…

A: In the market, the amount of capital is also known as principal amount that is invested today to…

Q: A single deposit of $25,000 was made by your grandparents on the day you were born 25 years ago. The…

A: The future compounded amount is calculated using the following formula: A = P(1+i)n, where "P"…

Q: A company has invested 2 million dollars 4 years ago in high yield junk bonds. if the bonds are now…

A: Given: Amount invested=$2 million Present value of bonds=$2.8 million Time=4 years To find: Rate of…

Q: The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $220,000 now…

A: First cost = $220,000 Budget = $65,000 Time Period = 7 years Interest Rate = 10% = 0.10

Q: Faro laser trackers are portable contact measurement systems that use laser technology to measure…

A: The annual income received from the investment made by the individual is referred to as rate of…

Q: What is the difference between APR and APY? Which one is used in interest factor formulas, tables,…

A: The annual percentage rate (APR) is the measure of annual interest rate. It is same as nominal rate…

Q: A company that manufactures brushes blowers invested $650,000 in an automated quality control system…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $220,000 now…

A: In economics, annual cost refers to the total cost of producing a good or service over the course of…

Q: Yvonne’s father was a true believer in “giving back.” He endowed a program 35 years ago to help…

A: Given:Future value (FV)=$36000r=8%n=1 year

Q: Midize Flower Company provides flowers and other nursery products for decorative purposes in medium…

A: The internal rate of return is 20%Explanation: Excel formula:

Q: One plan to raise money for Texas schools involves an "enrichment tax" that could collect $56 for…

A: In financial matters and money, present worth (PV), otherwise called present limited esteem, is the…

Q: 1. In order to build a new warehouse facility, the regional distributor for Valco Multi-Position…

A: *Hi there , as you have posted multiple questions following our guidelines we will only solve the…

Q: An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan…

A: The Annual Worth technique has a high computation and interpretive advantage because the Annual…

Q: Use the following analyses to select a system based on the cash flows given: a) Conventional payback…

A: SYSTEM 1 SYSTEM 2 First Cost ($) 12000 8000 NCF ($/year) 3000 1000 (Year 1-5) 5000 (Year…

Q: A mortgage bond issued by Automation Engineering is for sale for $8,600. The bond has a face value…

A: -Current Price of Bond (P): $8,600.- Face Value of Bond (F): $10,000.- Coupon Rate: 6% per year.-…

Q: An alternative for producing a pesticide will have a first cost of $400,000 and annual costs of…

A: Given that, First cost= $400,000 Annual cost = $40,000 Income is expected = $120,000 Interest rate =…

Q: AUS Government report predicts that the US Postal Service to lose 57 billion at the end of this…

A: Step 1: Determine the Uniform Gradient of Loss IncreaseInitial loss at the end of year 1 (Year 0…

Question

Las Cruces' Virgin Galactic is considering two materials
for certain parts in a reusable space vehicle: carbon fiber
reinforced plastic (CFRP) and fiber reinforced ceramic
(FRC). The costs are shown below. Which should be
selected on the basis of a present worth comparison if
MARR = 10% per year? (a) Solve using tabulated factors.
(b) (Spreadsheet exercises) Solve using single-cell
functions. (c) Using your spreadsheet functions, will the
selection change if the estimated life of the CFRP
material is 4, rather than 2, years?
Material
CFRP
First cost, $
Maintenance cost, $/year -29,000
Salvage value, $
2,000
Life, years
FRC
-205,000 -235,000
-27,000
20,000
2
4

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Given

VIEW

Step 2: By using factor table

VIEW

Step 3: By using Spread sheet

VIEW

Step 4: By using Spreadsheet

VIEW

Step 5: When life increase from 2 to 4 years

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 6 steps with 10 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

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.
An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the 10-year period. The rate of return on the investment was closest to: (a) 10. 6% per year (b) 14. 2% per year (c) 16. 4% per year (d) 18. 6% per year (e) Any of the above b d
ChemCo Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproofanything. Over a 5 year period, the costs associated with the pilot test product line were as follows: first cost of $43,000 and annual costs of $18,000. Annual revenue was $40,000 and used equipment was salvaged for $4,000. What rate of return did the company make on the product?
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.
A solid waste disposal company borrowed money at 10% per year interest to purchase new equipment needed. If the company got the loan 2 years ago and paid it off with a single payment of $4,600,000, a) Identify the engineering economy symbols and their values (PW, FW, i%, n) b) Draw the cash flow c) Calculate the principal amount P of the loan
A small minority firm TheGlobalTrans invested $100,000 for an intersection signal innovation project. At an interest rate of 15% per year, compounded bimonthly, what is the bimonthly income required to recover the investment in 2 years.
At CAE, the engineers estimated that a total of $500,000 will be deposited at the end of next year into a saving account for the repair of an old bridges throughout Amman area. Further, they estimate that the deposits will increase by $100,000 per year for only 9 years thereafter, then cease. The present worth, if public funds earn at a rate of 5% per year is
Two investments totaling $60,000 produce an annual income of $3410. One investment yields 5% per year, while the other yields 6% per year. How much is invested at each rate?
Construct a cash flow diagram that represents the amount of money that will be accumulated in 7 years from an initial investment of $24,000 now and $2,750 per year for 7 years at an interest rate of 10.00% per year. (Please upload your response/solution using the controls below.)