Question 5Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2.M&O costRetention Yr.Market Valueper yearO (First Cost) 55,00035,00045.00020,00047,500315,00050,0002,00053,500O 63,256O 69.289O 68,476O 67,854Question 6Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3.O 65,765O 64,332O 67,428O 66.256Question 7Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine?O 1O 2O 3O 4

Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…

Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2. M&O cost Retention Yr. Market Value per year O (First Cost) 55,000 1 35,000 45,000 2 20,000 47,500 15,000 50,000 4 2,000 53,500 O 63,256 O 69.289 68,476 67,854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. 65,765 64,332 67,428 O 66,256 Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 1 O 2 3 O 4

Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2. M&O cost Retention Yr. Market Value per year O (First Cost) 55,000 1 35,000 45,000 2 20,000 47,500 15,000 50,000 4 2,000 53,500 O 63,256 O 69.289 68,476 67,854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. 65,765 64,332 67,428 O 66,256 Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 1 O 2 3 O 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A cost analysis is to be made to determine what, if anything, should be done in a situation offering three alternatives in addition to doing nothing. Costs and benefits of the alternatives are estimated as follows: Alternative Cost Uniform Annual Benefit Residual Value Useful life (years) A 450,000 150,000 0 4 B 550,000 125,000 300,000 4 с 800,000 135,000 250,000 8 Use an 8-year analysis period, "stacking" projects as necessary. Use Excel to choose which, if any, of the projects should be chosen: MÁRR is 15%. a. Using annual worth analysis b. Using rate of return analysis
Pierre Rizzo is considering purchasing a new car. The price of the car is $60000, and Pierre hopes to keep it 4 years and then sell it for $19000. Based on past experience, Pierre drives about 12,000 km per year and lives in a downtown apartment where they must pay a $63 per month parking fee. Pierre has budgeted the following automobile expense items for the next 4 years: Expense Gasoline(13.7L Per 100KM)($1.71 Per Liter) Licence/Registration Insurance Maintenance Tires ($1407 per set that last 42000KM) Parking (48 Months) Interest Depreciation (STRAIGHT LINE) Cost Fixed/Variable Variable $483 Fixed $3309 Fixed $960 Variable Variable $3024 Fixed $3090 Fixed $ Fixed CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION: TOTAL FIXED COSTS (TFC) TOTAL VARIABLE COSTS (TVC) TOTAL COSTS (TC) TOTAL KMS AVG. FIXED COSTS/KM $ AVG. VARIABLE COSTS/KM $ AVG. TOTAL COSTS/KM $ 48000KM
Jim Smith is considering purchasing a new car. The price of the car is $51000, and Jim hopes to keep it 6 years and then sell it for $12500. Based on past experience, Jim drives about 20,000 km per year and lives in a downtown K apartment where they must pay a $22 per month parking fee. Jim has budgeted the following automobile expense items for the next 6 years: Expense Gasoline(10.5L Per 100KM) ($1.96 Per Liter) Licence/Registration Insurance Maintenance Tires ($1332 per set that last 70000KM) Parking (72 Months) Interest Depreciation (STRAIGHT LINE) Cost Fixed/Variable Variable $754 Fixed $5445 Fixed $6000 Variable Variable $1584 $3670 Fixed Fixed CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION: TOTAL FIXED COSTS (TFC) TOTAL KMS TOTAL VARIABLE COSTS (TVC) TOTAL COSTS (TC) AVG. FIXED COSTS/KM AVG. VARIABLE COSTS/KM AVG. TOTAL COSTS/KM Fixed 120000KM
Graph on right, shows AW of costs versus number of service years of project X. Based on the graph, economic service life of the project is Larger costs Total AW of costs AW of AOC Capital recovery 3.5 10 Years О 3.5 years O 10 years O 1 year О З уears AW of costs, S/year
An industrial plant has hired a contractor to develop a solar farm nearby for the industrial plant's electricity consumption. During the 3-year construction period, the contractor will need to run a generator to power the construction. Cost analysis from previous projects indicates: Generator Brand Installed Cost Cost per Hour A $22M $500 B $23M $400 C $25M $250 D $30M $150 At the end of 3 years, the generator will have a salvage value equal to the cost of removing them. The generator will operate 6,000 hours per year. The lowest interest rate at which the contractor is willing to invest money is 7%. (The minimum required interest rate for invested money is called the minimum attractive rate of return, or MARR.) Select the alternative with the least present worth of cost. O Choice "C" with $29,872,900 O Choice "B" with $29,298,320 O Choice C with $28,936,450 O Choice "A" with $29,872,900
Amazing Airlines has the following customer metrics: Average customer relationship length: 8 years Average number of flights per customer per year: 2.5 Average cost per ticket: $600 Profit margin per customer: 8% The net CLV for Amazing Airlines is closest to? O $18,000 $960 $1260 O $12,000
Question 88 M Full explain this question and text typing work only thanks
Solve without using Excel (economics factor table is okay)