Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $16,500 per year. Anemission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year.Part aWhat is the future worth of this investment? $

Future worth (FW) is the value of an asset at a specific date. It measures the nominal future sum of…

rlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $16,500 per year. An mission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. art a What is the future worth of this investment? $

rlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $16,500 per year. An mission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. art a What is the future worth of this investment? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $16,500 per year. An
emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year.
Part a
What is the future worth of this investment? $

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4
An economic evaluation of the following mutually exclusive alternative equipment is being conducted. Since the equipment have different service lives, repeatability is assumed using an analysis period of 30 years. The MARR is 6% per year. Capital investment Annual revenues generated Useful life Market (salvage) value The net Annual worth of Alternative B over the analysis perio A. $39,267 More Info Alternative A B $30,000 $90,000 $20,000 $30,000 10 years None 15 years None Discrete Compounding; 1=6% Single Payment OB. $23,462 Compound OC. $16,923 Amount Present Compound Amount Present Factor Worth Factor OD. $41,466 To Find F To Find P Factor To Find F Worth Factor Uniform Series Sinking Fund Factor Capital Recovery Factor To Find P OE. $20,733 Given P Given F Given A Given A Given F To Find A To Find A Given P N F/P P/F F/A P/A A/F A/P 1 1.0600 0.9434 1.0000 0.9434 1.0000 1.0600 The net Present worth of Alternative B over the analysis perio 2 1.1236 0.8900 2.0600 1.8334 0.4854 0.5454…
For alternatives shown in the table below and on the basis of their capitalized costs CC and an interest rate of 10% per year. Answer the following questions to select the better option: Alternative 45,025 5.000 Fist cost 5 249.854 13,000 Maintenance costs, 1 per year Salvage valu Periodic costs Severy 10 years e years 2.000 10,000 10.000 4. CC for alternative A
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