Leonard, a company that manufactures explosion-proof motors, is considering two alternatives for expanding its international exportcapacity. Option 1 requires equipment purchases of $740000 now and $440000 two years from now, with annual M&O costsof $66000 in years 1 through 10. Option 2 involves subcontracting some of the production at costs of $240000 per year beginningnow through the end of year 10. Neither option will have a significant salvage value. Use a present worth analysis to determine whichoption is more attractive at the company's MARR of 18.00% per year. (Include a minus sign if necessary.)The present worth of option 1 is $Option (Click to select) is more attractive.(Click to select)21and that of option 2 is $

Given DataMARR (Minimum Acceptable Rate of Return): 18% (or 0.18)Years: 10Option 1 Calculations1.…

Answered: Leonard, a company that manufactures…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer is 7.322 don't know how?
An 85 hp motor is used 8 hrs per day, 250 days per year. Electricity costs $0.10 per kWh. What is the expected annual energy cost to operate this motor? 1 hp = 0.746 kW Select the closest answer. O $1,585 per year O $55,547 per year O $12,682 per year $18,516 per year
Swiss franc 1-year forward rate $1.17 !! Swiss franc spot rate now $1.09 %3D Also assume that a U.S. exporter denominates its Swiss exports in Swiss francs and expects to receive SF500,000 in 1 year. Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a forward hedge? O$545,000 O$438,596 $585,000 O $570,000
not use ai please
A new trailer worth $17,500 is purchased and it's expected that the salvage value after 10 years will be $750. If the interest rate is 4%, what equation would be appropriate to use to determine the Expected Uniform Annual Cost (EUAC)? O A = P(A/P, i, n) - F(P/F, i, n) O A = P(A/P, i, n) - F/n %3D O A -P+F O A - PIA/P, i, n) - F(A/F, i, n)
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Q9.4. Concurris Prototyping is committed to using the newest and finest equipment in its labs. Accordingly, Wilma, a senior engineer, has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. She believes it can be demonstrated that the proposed equipment is economically advantageous at a 15%-per-year return and a planning horizon of 5 years. Perform the replacement analysis using the annual worth method, a 5-year study period, and the estimates below. Was Wilma correct? Equipment Current Proposed Original purchase price, $ -30,000 -40,000 Current market value, $ 15,000 Remaining life, years 15 Estimated value in 5 years, $ 7,000 10,000 Salvage value after 15 years, $ 5,000 AOC, $ per year -8,000 -3,000
Engineering Economics You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. Use the Annual Worth method in your solution.Don't use excel.
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