!Required informationFor equipment that has a first cost of $19,000, the estimated operating costs and year-end salvage valuesare as shown.YearOperating Cost, $Salvage Value, $1-1,0007,00012-1,2005,0003-1,3004,500-2,0003,000-3,0002,000Determine the economic service life ESL, at i= 10% per year using factors.The economic service life ESL, isyears with the AW = $-

The given data are executed in excel.Therefore, the economioc service life ESL will be 5 years…

Answered: ! Required information For equipment…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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33 8 01:57:08 Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $680,000, an operating cost of $92,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,120,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $- 7 and the present worth of process W is $- The process selected on the basis of the present worth analysis is process (Click to select)
4
Required information For equipment that has a first cost of $10,500, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 3 -1,300 4,500 4 -2,000 3,000 5 -3,000 2,000 Determine the economic service life ESL, at i= 10% per year using factors. The economic service life ESL, is 4 O years with the AW $- 5982.12 =
Raytheon wishes to use an automated environmental chamber in the manufacture of electronic components. The chamber is to be used for rigorous reliability testing and burn-in. It is installed for $800,000, $350,000 of which is borrowed at 11% for 5 years, and will have a salvage value of $150,000 after 8 years. Its use will create an opportunity to increase sales by $650,000 per year and will have operating expenses of $250,000 per year. Corporate income taxes are 40%. Develop tables using a spreadsheet to determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR, if the chamber is kept for 8 years. After-tax MARR is 10%. Use 7 years class depreciation for MARCS
A delivery car had a first cost of $34,000, an annual operating cost of $15,000, and an estimated $5000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 4 years and must be sold now as a used vehicle. At an interest rate of 12% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? The market value of the used vehicle is determined to be $ 26423
Required information For equipment that has a first cost of $17,000, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 3 -1,300 4,500 4 -2,000 3,000 5 -3,000 2,000 Write the PMT function to determine AW for year 4, if net operating costs are entered into cells B2 through B6. (Please upload your response/solution using the controls below.)
A company owns an equipment that costs ₱ 90,000. After 8 years it will have an estimated salvage value of ₱ 18,000. Determine its book value at the end of 5 years using Declining Balance Method. Do not use excel!
Note: the answer should be typed.

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