Please correct answer and don't use hand raiting Question 2 6pts!A company must decide whether to buy Machine A or Machine B. Based on the followingcost information, using a rate of 10% per year, Determine the best alternative based onPresent Worth Analysis (LCM assumption) and indicate the preferred choice if one of the twomachines types is required to be chosen Show all work and show cash flow diagramsMachine AMachine BFirst cost$15,000$25,000Maintenance and1,600400operating costsAnnual benefit8,00013,000Salvage value3,0006,000Useful life, in years36

Step 1: Present Worth (PW) Calculation for Machine ASince Machine A has a 3-year lifespan, it will…

Answered: Question 2 6pts! A company must decide…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can some one please help me to answer each question correctly? please and thank you.
:[A] { > Incremental analysis ([ B Alternative], [B wins ]): C A company considering 2 different machines at MARR at 12% Both life spans = 10 years Initial Cost Annual Operating lost Benefits per yin ar Salvage Value \table MM If you are and of frying investment to company decide More than 2 alternatives if the additional increment is worth while, compare Alternative: A Incremental analysis (Alternative) pairs then B C A MARR Company at Considering 2 different machines at 12% Both life spans = 10 years. M/C X м/с у Initial Cost 160000 285000 Annual Operating Cost Benefits per year Salvage Value 45 000 90000 45000 105000 20000 40000
am. 122.
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2.7 A machine cost $315000 to purchase . Fuel , oil, grease and minor maintenance are estimated to cost $53.50 per operating hours. A set of tires cost $16000 to replace and their estimated life is 3100 user hours. A $ 17000 major repair will probably be required after 6200 hr of use. The machine is expected to lat for 9300 hr. after which it will be sold at a price (salvage value ) equal to 13% of the original prurchae price . A final the owner of the machine charger per hours of use, if it is expected that the machine will operated 3100 per year ? the compnay's cost -of -capital rate is 7.25%.
S 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
Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4%, 6%, and 8% per year. Air-Conditioning System 1 System First cost, $ AOC. $ per year Salvage valué, $ New compressor and motor cost at midlife, $ Life, years -9,000 -850 -100 Proy -2,200 8 The annual worth of air-conditioning system 1 when the MARR is 4% is $ The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR is 6% is $ The annual worth of air-conditioning system 2 when the MARR is 6% is $ 10 www Air-Conditioning System 2 -13,000 -105 -300 -3,140 12
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
12% per year. For the cash flows shown, use an annual worth comparison and an interest rate of First cost, $ Annual cost$, per year Overhaul cost every 5 years,$ Salvage value, $ Life, years X Y -100,000 -250,000 -40,000 -30,000 0 2,000 30,000 10,000 5 10 Z -500,000 -10,000 5,000 ∞ a) Determine the alternative that is economically best. b) Determine the first cost required for each of the two alternatives not selected in part a) so that
I Will 2nd time upload this question not a proper way this Answer ......... Please provide steps by step answer with proper explanation with final answer
Alternatives B and C are replaced at the end of their useful lives with identical replacements. Find the best alternative using MARR = 10%. Data Initial Cost Uniform Annual Benefit Useful Life a) Benefit to Cost ratio analysis b) Payback Period Analysis Alt. A $6,00 $150 20 Alt. B $900 $300 5 Alt. C $1,800 $450 10
a company is considering the purchase of a new Lathe, where there are 3 alternative Lathes with brands D, E and F with economic value for each Lathe as follows; Lathe Machine D Lathe Machine E Lathe Machine F Initial Cost (Million Rp) 530 540 480 Maintenance Cost (MillionRp) 90 80 100 Residual Value (Million Rp) 60 130 80 Operating Life 10 10 10 Question: Do a Present Worth Analysis to be able to determine the Alternative chosen from the three Generators with MARR = 13%?

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