Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 11 percent. The company is considering three models:ModelTAXFirst Cost$100,000$110,000$210,000Economic Life7 years8 years6 yearsUsing the annual worth method, which of the three tube benders should RCMP buy?Yearly Net Savings$55,000$50,000$75,000Click the icon to view the table of compound interest factors for discrete compounding periods when i = 11%.The annual worth of Model T is $ ☐. The annual worth of Model A is $ The annual worth of Model X is $ ☐. So, the Model(Round to the nearest cent as needed.)is the better choice to buy.Salvage Value$15,000$35,000$75,000

The objective of the question is to determine which tube bender model (T, A, or X) Ridgley Custom…

Answered: Ridgley Custom Metal Products (RCMP)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please choose one of the following options. Double check your work. There is no additional information. This is the question and those are your options. PW analysis stands for Present Worth Analysis. It is a term used in engineering economics. What will be the total lifetime for every project if we compare them with PW analysis? Project A has a lifetime of 9 years, project B has a lifetime of 7 years, and project C has a lifetime of 3 years. 9 189 126 27 63
4
Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 13 percent. The company is considering three models: Economic Life 5 years 5 years 3 years Using the annual worth method, which of the three tube benders should RCMP buy? Model T A X First Cost $120,000 $170,000 $210,000 Yearly Net Savings $50,000 $80,000 $85,000 Salvage Value $20,000 $25,000 $80,000 Click the icon to view the table of compound interest factors for discrete compounding periods when i = 13%. The annual worth of Model T is $ The annual worth of Model A is $ The annual worth of Model X is So, the Model $ is the better choice to buy. (Round to the nearest cent as needed.)
Question 1 Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self- managed retirement fund. He thinks he will need S40,000 per year during retirement. He intends to invest his retirement in a low-risk mutual fund which return 1.5% per year. How many years can he live off this retirement fund without the need to look for a job?
Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the annual worth of this project?
Appledale Dairy is considering upgrading an old ice-cream maker. Moderate upgrading costs $7050 now and yields annual savings of $4800 in the first year, and decreases by $300 dollars every year after that. If the upgraded ice-cream maker will last for seven years, what is the present worth of the upgrading option? Use a present worth comparison. Appledale's MARR is 9 percent.
None
QUESTION 1 IC OM B D Life/years $420,000 $45,000 $110,000 $20,000 10 Z $540,000 $35,000 $260,000 $45,000 20 W $500,000 $50,000 $80,000 $10,000 10 $200,000 $20,000 $180,000 $30,000 20 $250,000 $40,000 $90,000 $10,000 15 based on the above ME alternatives and using the B/C analysis, which alternative we should select ? i=10%. X Y Z W V
Use annunal worth !!!
Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow one-fourth of the purchase price from a bank at 16 percent compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $3,000 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $20,000 per year to maintain the system but will save $50,000 per year through increased efficiencies. Galvanized Products uses a MARR of 14 percent/year to evaluate investments. Using the ERR method, should the new computer system be purchased? (A) Yes B) No
Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP'S MARR is 14 percent. The company is considering three models: Model T A X First Cost $90,000 $140,000 $190,000 Economic Life 6 years 6 years 5 years Yearly Net Savings $50,000 $80,000 $85,000 Using the annual worth method, which of the three tube benders should RCMP buy? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 14%. The annual worth of Model T is $ The annual worth of Model A is $ .The annual worth of Model X is $ (Round to the nearest cent as needed.) So, the Model is the better choice to buy. Salvage Value $25,000 $25,000 $75,000

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