of two methods must be used to produce expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of 120,000, an operating cost of $8000 per year, and a $40,000 salvage value after its 3-year life. At an interest rate of 12% per year, which method should be used on the basis of a present worth analysis? Also, write the two spreadsheet functions to perform the PW analysis. Be

Q: 12% per year. For the cash flows shown, use an annual worth comparison and an interest rate of First…

A: The annual worth (AW) value for an alternative will be inclusive of the two components: capital…

Q: Alternative R has a first cost of $88,000, annual M&O costs of $62, 000, and a $20,000 salvage value…

A: Maintenance and Operations (M&O) Tax Rate: The M&O segment is the assessment rate that is…

Q: Alternative X has a first cost of 19000 an annual operating cost of 3500, and a salvage value of…

A: Present worth = -P+(AR-Am)( P/A,i%,n)-+F(P/F,i%,n)where, P is the initial cost, AR is the annual…

Q: A company that manufactures magnetic flow meters expects to undertake a project that will have the…

A: Given  FC=  $ -840,000 Equipment  replacement cost in year 2 = -$300,000 Annual operating cost…

Q: You must evaluate the alternatives below to increase plant capacity for manufacturing high-pressure…

A: The best alternative will be selected with a comparison of the present worth amounts of the…

Q: A professional photographer who specializes in wedding-related activities paid $46,500 for equipment…

A: A tool used by organisations to assess the minimal sales required to pay all of their costs and…

Q: (20 points) be purchased (bought) for $ 25 per unit with a quick deliivery. period of5 years.…

A: here we  can find the given statement as follow

Q: Dexcon Technologles, Inc., Is evaluating two alternatives to produce its new plastic filament with…

A: Method DDM LS First Cost 140000 480000 M&O 30000 35000 Salvage Value 6000 29000 Life 2 4

Q: None

A: Step 1: Calculate the Future Worth of Initial CostFor each method, the initial cost will grow based…

Q: Required information Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The…

A: The reason the present worth method is so popular in the industry is that all future costs and…

Q: A chemical processing corporation is considering two methods to dispose of a non-hazardous chemical…

A: The present Worth Comparison technique is to look at the expense and advantages of the present year…

Q: ngineer analyzed four Independent alternatives by the present worth method. On the basis of her…

A: Time value of money In engineering economics, we come across many questions while taking decisions…

Q: Calculate the present worth of all costs for a newly acquired machine with an initial cost of…

A: Answer; Given   Initial Cost = $ 24,000   Useful Life = 15 Years   Operating Cost =…

Q: Compare the alternatives shown below on the basis of annual worth using an interest rate of 8% per…

A: Annual Worth refers to the equivalent uniform annual worth of all estimated income and expenses…

Q: A A company needs special machine for checking the temperature of the production machines, the…

A: The information being given is as follows:- N = 40  F = 3000 P = -11,000 I = 3%

Q: Compare three alternatives on the basis of their capitalized costs at /= 9.00% per year and select…

A: Capitalized cost (CC) refers to the PW (present worth) of an alternative that is going to last…

Q: A delivery car had a first cost of $32,000, an annual operating cost of $15,000, and an estimated…

A: The annual worth is the net of all the benefits and costs incurred over a one-year period.…

Q: A company that manufactures magnetic flow meters expects to undertake a project that will have the…

A: The table below shows the cash flows of the project:First cost (at n=0)-900,000Equipment replacement…

Q: Problem 06.004 Annual Worth and Capital Recovery Calculations A delivery car had a first cost of…

A: Annual Worth analysis: The annual worth (AW) analysis is preferably used to compare alternate…

Q: A chemical company plans to replace the old hopper, where the process for replacement costs 50…

A: It can be defined as a blueprint or plan of an individual or any organization about any project's…

Q: A The fixed costs at Mahi consulting company are $120,000 annually. The annual revenue is $3,000 per…

A: The meaning of annual revenue is the money your business receives during the course of a year. Here,…

Q: Speedy Delivery Incorporated is updating its delivery system control equipment. As the lead…

A: The annual worth ascertains the annual cash flow throughout the investment period which is…

Q: Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of…

A: The present worth of each option is the discounted value of future cash flows. It is the present…