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.
If money is worth 10.334%, determine the following: A.)Present worth of concrete piping system. B.)Present worth of cast iron piping system. C.)Most economical piping system. Justify your answer in your solution. (Please provide detailed solution not in excel, I'm in rush I will guarantee you to vote it up for your effort thank you.)
TRUE OR FALSE The future worth of a perpetuity from one (1) to ? years is undefined because as ? approaches infinity, the valuebecomes 0. The breakeven point always maximizes the profit.
:[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
The Gigadigit Manufacturing Inc. is considering to produce a new product. The following data have been provided to management: Sales price S17.50/unit Equipment cost S250,000 Incremental overhead cost |550,000/year Sales and marketing cost $150,000/year Operating and maintenance cost $25/operating hour Production time/1,000 units 100 hours Packaging and shipping cost s0.50/unit Planning horizon Minimum attractive rate of return 15% 5 years The managers would like to know the viability of this product and how it would roll out in sales. (a) To give them basis and insight what is the break-even value of units that must be sold annually to keep the product viable? (b) If the target revenue is from 30,000 units sold, what is the expected profit? (C) If the profit drops by 13% due to equipment replacement, how much must have been the cost of the alternative equipment? (d) Provide graph for (a)
The Bureau of Public Highways is considering possible types of road surfacing with cost estimates per kilometer: Type B P650k First Cost Resurfacing period Resurfacing Cost Type A P500k 8 years P200k Average annual maintenance cost P15k The periodic resurfacing do not include the base of the subgrade. Compare these types by calculating the present worth for 24 year service, with no salvage value at the end of this time using interest rate of 10%. What if Capitalized Cost is used, which is better? 12 years P250k P20k
2
(b) Use the easiest technique to determine which one of the following alternatives should be selected. MARR = 10% and the chosen alternative is needed for 6 years. Write down any assumptions that you make. Alternative 1 2 Capital Investment Annual Revenues less Expenses Useful Life -$10,000 $6,000 -$15,000 $6,500 2 3
am. 122.
7
please provide correct answer it would great help
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%.

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