Present Worth Method. Show your complete solution and box your answers. A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 mil- lion units). Which one should be selected on the basis of a present worth analysis at 10% per year? In-house Contract First cost, S -30 0 <-5 -2 Annual cost, $ per year Annual income, $ per year 14 2 Salvage value, $ Life, years 5 3.1 5

Present Worth Method. Show your complete solution and box your answers. A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 mil- lion units). Which one should be selected on the basis of a present worth analysis at 10% per year? In-house Contract First cost, S -30 0 <-5 -2 Annual cost, $ per year Annual income, $ per year 14 2 Salvage value, $ Life, years 5 3.1 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A large textile company is trying to decide which sludge dewatering process it should use ahead of its sludge drying operation. The costs associated with centrifuge and belt press systems are shown. Compare them on the basis of their annual worths using an interest rate of 10% per year. System First cost, $ Centrifuge -250,000 -31,000 Belt Press -170,000 -35,000 -26,000 10,000 4 AOC, $/year Overhaul in year 2, $ Salvage value, $ Life, years The annual worth of the centrifuge system is $- The system selected on the basis of the annual worth analysis is the (Click to select) ✓ system. 40,000 6 and the annual worth of the belt press system is $-
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A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units). Which one should be selected on the basis of a present worth analysis at 10% per year? In-house Contract First Cost, $ -30 Annual Cost, $ per year -5 -2 Annual Income, $ per year 14 3.1 Salvage Value, $ 2 Life. years 5 Approximately, what is the value of (P) if A-340, n=9 years, and i= 8% per year? O a. 2847 O b. 2549 O c. 1763 O d. 2124
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QUESTION 8 Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be selected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,397,151 534,579 Annual operating cost, $ per year 90,383 32,000 Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 4 8 EGN 3212 - Eco PW for Process A-
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