• MARR is 12% per year. Select the more economical vendor bid. Initial cost. S -8,000 -13.000 Annual costs, S per year - 3,500 -1.600 Salvage value, S Life. vears 2,000 10
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- Question 7 for th below two machines and based on CC analysis which machine we should select? MARR=10%. Machine A Machine B First cost, $ Annual cost, $/year Salvage value, $ Life, years 25,640 100,000 11,114 7,000 5,483 3 infinite Answer the below question: A- the CC for machine A=. Compare the alternatives shown below on the basis of a future worth analysis, using an interest rate of 18% per year. P Q First cost, $ - 23,000 -30,000 Annual operating cost, $ per year Salvage value, $ Life, years -4,000 -2,500 3,000 1,000 3 6S 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 installing
- If the MARR=10%, compute the value of X that makes the alternatives equally desirable. Do not use spreadsheets. Alternatives Machine A Machine B First cost $12,000 $20,000 Annual Operating cost $1,400/year X Salvage value $2,000 $3,000 Life 4 years 8 yearsRebecca is moving away from New York City for her new job, so she must buy a car rather than rely on public transit. The new car she is considering will cost $ 18,000 to buy, $ 1,500 per year to insure, and $ 500 per year for maintenance after the 3-year warranty expires. She would keep the car for 7 years when it will have a salvage value of $ 7,000. She has found a 2-year-old car that is the same model for $ 13,000. The 3-year warranty is transferrable, so the annual maintenance cost of $500 starts in year 2. Because the car is less valuable, insurance is $300 per year less than for the new car. After 5 years, the vehicle will be 7 years old and will have the same salvage value of $ 7,000. Rebecca is ignoring costs for fuel, oil, tires and registration, because the two vehicles will have the same costs. If her interest rate is 9%, how much cheaper is the used car (difference of EAC of two vehicles)Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 16% per year. Platform First cost, $ million Y Z -300 -450 -510 M&O, $ million per year -320 -290 -230 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20 Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- 2298.4 worth of platform Z is $- 1944.14 million, the present worth of platform Y is $- 2262.15 million, and the present million. The platform selected based on the present worth is platform Z
- What is the Present worth difference of Alternative A and B. Capital investment Annual Cash inflow Life in years Salvage value Interest is 10% per year O a. 1452 O b. 1234 OC. 998 O d. 1106 Alternative A 3500 1255 4 0 B 5000 1480 6 0Compare three mutually exclusive alternatives on the basis of their capitalized costs at i =10% per year. Alternative |First cost, $ AOC, $/year Salvage value, $| Life, years B2 300,000 |-10,000 |70,000 A1 -50,000 C3 |-30,000 5,000 2 900,000| 3,000 |200,000The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 0 -$15,000 -$19,000 -$24,000 1 -$6,500 -$5,600 -$4,000 2 -$6,500 -$5,600 -$4,000 3 -$6,500 -$5,600 -$4,000 4 -$6,500 -$5,600 -$4,000 5 -$6,500 + $0 -$5,600 + $2,000 -$4,000 + $5,000 Show the comparisons and internal rates of return used to make your decision:Comparison 1: (Gate 1 versus Gate 3 or Gate 2 versus Gate 3 or Gate 2 versus Gate 1?) IRR 1: %Comparison 2: (Gate 1 versus Gate 2 or Gate 2 versus Gate 3 or Gate 3 versus Gate 1?) IRR 2: Using an internal rate of return…
- 1. A pharmaceutical company that manufactures ascorbic acid tablets is investigating two production options that have the estimated cash flows shown ($10 million units). Which one should be selected based on a present worth analysis (in million units) at 10% per year? In- outsourced house Initial Investment -30 Annual cost, $ per year 24 -5 -2 Annual Revenue, $ per 13 year 2 N/A Salvage Value, $ LifeThe alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. What is the capitalize cost for machine A. Machine A Machine B First cost, SR -100,00 -800,000 Annual Operation Cost, SR/ year Salvage value, SR Life tyears) -70,000 -12,000 8000 1,000,000 -$850,996 $920,000 -$900,550 $950,696A contractor can buy trucks for 800 000 usd each or rent them for 1,200 usd per truck per day. The truck has a salvage value of 100, 000 usd at the end of its useful life for 5 years. The annual maintenance cost is 20 000 usd per truck. Using the annual worth method and 14 % interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase. Show full solution tnx. xx engineering econ