The alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. What is the capitalize cost for machine A. Machine Machine A -100,00 -800,000 -70,000 -12,000 В First cost, SR Annual Operation Cost, SR/ year Salvage value, SR Life (years) 8000 1,000,000

The alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. What is the capitalize cost for machine A. Machine Machine A -100,00 -800,000 -70,000 -12,000 В First cost, SR Annual Operation Cost, SR/ year Salvage value, SR Life (years) 8000 1,000,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Question S The AW method is to be used to select the better alternative of the two machines listed…

A: Here we calculate the annual worth of the both machines and choose the best option , so calculation…

Q: s Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with…

A: Present worth, also known as present value, is the current monetary value of future cash flows or…

Q: ligthing first cost of investment is $120,000. annual mtnce expenses are expected to be $6600 for…

A: In this question we have to find out the capitalized cost with the help of the above information.

Q: 12% per year. For the cash flows shown, use an annual worth comparison and an interest rate of First…

A: The annual worth (AW) value for an alternative will be inclusive of the two components: capital…

Q: Question 8 Two processes can be used for producing a polymer that reduces friction loss in engines,…

A: Interest rate= 10% For process A First cost= $1,179,136 Annual operating cost per year= $80,727…

Q: "There are three machines in the mechancical engineering lab A. B. and Cand need to be evaluated…

A: In economics and finance, present value, also known as present discounted value, is the value of an…

Q: nd the capitalized cost at 15% interest, initial cost $200000, Annual operating cost $4000

A: Below is the given values: Interest rate = 15% Initial cost = $200000 Annual operating cost = $40000…

Q: If you are asked to perform an incremental ROR analysis for the two robots listed below, how would…

A: The analysis of financial return where there are two opportunities for investment that involve…

Q: Advanced Technologies, Inc. is evaluating two alternatives to produce its new plastic filament with…

A: Given both alternatives have negative or outflow of cashflow, we will compare both alternatives…

Q: The initial investment costs and the "annual revenues less expenses" of three investment…

A: business and for engineering economics in both industrial engineering and civil engineering…

Q: Machines that have the following costs are under consideration for a robotized welding process. Use…

A: Present worth = -P+(AR-Am)( P/A,i%,n)+F(P/F,i%,n)where P is the initial cost, AR is the annual…

Q: 12% per year. For the cash flows shown, use an annual worth comparison and an interest rate of First…

A: The annual worth (AW) value for an alternative will be inclusive of the two components: capital…

Q: Size Cost Life Salvage Efficiency Energy Cost Operating Hours Motor 25 HP $13,000 20 Years $0 89.5%…

A: Here, we are given two mutually exclusive alternatives. First is standard motor and second is…

Q: Two types of linings are under consideration for a certain chemical tank. A bituminous lining will…

A: Bituminous LiningInitial cost=$6000Cost at 3rd year=$2000Life=5 yearExpoxy coatingInitial…

Q: Which among the materials will result in the most economical product and at the same time give the…

A: Let's compare both the alternatives to find the economicalproduct. Boysen paint…

Q: Alternative X has a first cost of 19000 an annual operating cost of 3500, and a salvage value of…

A: Present worth = -P+(AR-Am)( P/A,i%,n)-+F(P/F,i%,n)where, P is the initial cost, AR is the annual…

Q: New microelectronics testing equipment was purchased 2 years ago by Mytesmall Industries at a cost…

A: If the current unit is retained for the next 2 years: Annual Maintanence&Operation cost=$125,000…

Q: The engineering department have appointed you on a task purchasing new forklift to transport sheet…

A: Given Information: Item Forklift A Forklift B First Cost , RM 90,000…

Q: ! Required information Wall's Pharmacy will have to sell a new product that has an estimated revenue…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Required information The TT Racing and Performance Motor Corporation wish to evaluate two…

A: The annual worth AW of the given machine is calculated as These cash flows cost so the annual worth…

Q: A newly proposed project has a first cost of $ -285676 and estimated annual income of $49648 per…

Q: Which alternative in the table below should be selected when the MRR = 6% per year? The life of each…

A: The internal rate of return (IRR) is the annual rate of development that a venture is supposed…

Q: (20 points) be purchased (bought) for $ 25 per unit with a quick deliivery. period of5 years.…

A: here we can find the given statement as follow

Q: At i = 10% per year, a machine has a first cost of $8,000 and estimated operating costs and year-end…

A: In the provided case the equated annual cost method of analysis is an optimal computation to decide…

Q: asp

A: The problem is asking us to compare two systems, a centrifuge and a belt press, based on their…

Q: Two processes can be used for producing a polymer that reduces friction loss in engines. Process T…

A: The cost schedule for process T and process W is represented in table below:Process TProcess…

Q: ! Required information A company that manufactures magnetic flow meters expects to undertake a…

A: It is the cost incurred by the investor for using the assets, Here, things are included such as…

Q: The first cost of an electric rebar bender is P355,000 and a salvage value of P50,000 at the end of…

A: Answers Given data PW = P355000 r=4.3% n=5

Q: there are three machines in the mechanicle angineering lab A ,B , and C and need to be evaluted…

A: Given: Machine A The first cost of = $4,500 An annual operating cost of = $900 Salvage value of =…

Q: Required information A company that manufactures magnetic flow meters expects to undertake a project…

A: Equivalent Annual Cost (EUAC) is used to evaluate the cost of an investment or project on an annual…

Q: Required information A company that manufactures magnetic flow meters expects to undertake a project…

A: The annual worth ascertains the annual cash flow throughout the investment period which is…

Q: company can purchase a certain machine or rent one. IF purchased, the machine will cost $15,000 and…

A: Here we calculate the number of days the machine be justify its purchase by using the given…

Q: ed costs at Harley Motors are $1 million annually. The main product has revenue of $8.50 per unit…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Problem 1. Indicate which process from the alternatives shown below should be used on the basis of…

A: Here we calculate the annual worth of the process X and Y by using the given information , so the…

Q: Three mutually exclusive design alternatives are being considered. The estimated cash flows for each…

A: Given information Alternative A Alternative B Alternative C Capital Investment (First Cost)…

Q: Four different methods of recovering by-products are taken into the consideration. All methods have…

A: Method First Cost Salvage value Annual Income A -110,000 1400 4000 B -110,000 2000 6000 C…

Q: Question (4): A plant has upgraded an emission control valve. The modification costs only $8000 and…

A: The present worth is the dollar worth of future payments as of today. Specifically, for a payment…

Q: For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%…

A: Machine A Machine B Machine C First Cost 21,302 30000 10000 Annual Cost 9993 6000 4000…

Q: Two processes can be used for producing a polymer that reduces friction loss in engines. Which…

A: Given : Process A : First Cost = 1397151 Annual operating Cost=90383 Salvage Value=80000 Life= 4…

Q: For producing a specific product Two processes can .be used Process X will have a first cost of…

A: given that, for alternative x initial cost is $160000, operating cost is $7000 and salvage value is…

Q: Help S Two processes can be used for producing a polymer that reduces friction loss in engines.…

A: The present worth of the project's costs or profits is known as present worth (PW). The PW is…

Q: (engineering economics) Determine the best alternative based on a 12% MARR using the following…

A: Year A B C 0 -100 -120 -40 1 0 0 -50 2 10 40 15 3 10 0 15 4 10 40 15 5 10 0 15 6 10 40…

Q: You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for…

A: Present worth is the current worth of a future amount of cash or stream of incomes given a…

Q: b) National Homebuilders, Inc., plans to purchase new cut-and-finish equipment. The details of the 2…

A: Annual worth formula: Equal payment series capital recovery factor (A/P,i,n):…

Q: QUESTION 4 For the below ME alternatives, which machine should be selected based on the AW analysis.…

A: Machine A Machine B Machine C First Cost 15,000 26,460 10000 Annual Cost 8,701 6000 4000…

Question

The alternatives shown on the basis of their
capitalized costs using an interest rate of 10%
per year. What is the capitalize cost for
machine A.
Machine Machine
A
В
First cost, SR
Annual Operation Cost,
SR/ year
Salvage value, SR
Life (years)
-100,00 -800,000
-70,000 -12,000
8000
5
1,000,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

National homebuilders Inc plans to purchase new rain gutter forming equipment. Two manufacturers offered the following estimates, First Cost, $ Annual Operating Cost, $/year Salvage Value, $ Life, years Vendor A 15,000 3500 1000 6 Vendor B 18,000 3100 2000 9 a. Determine which vendor should be selected on the basis of a PW comparison, if the MARR is 15% per year. b. National Homebuilders has a standard practice of evaluating all options over a 5-year period. If a study period of 5 years is used and the salvage values are not expected to change, which vendor should be selected?
Engineer Miranda ended his account in Smart postpaid having of cost of 800PhP for his last bill of statement in September 2021 and paying it by October 19, 2021. He started to avail of the promo in June 2018 and had a monthly payment of 990PhP which was paid on the 19th of the stated month with a wifi modem which has a price of 950PhP being purchased. His teaching journey began dated February 22, 2018, and started receiving his compensation by the end of March. He was offered to have a monthly insurance contribution in January same year upon being hired with his new work. A. Assuming that his chosen monthly contribution of 990PhP which must be started at the end of the first month, how much will be the total contribution today if the cost of rate is 5% compounded every month contribution if he began his first payment at the end of the month when he started availing the promo in Smart postpaid? B. How much will be the accumulated amount if the contract of insurance started and end at…
(ii) The value V of a Porsche 718 Cayman that is t years old can be modeled by V(t) = 420,000(0.965) (a) What would be worth the car's worth in 2 years? (b) I how may years will the car be worth $325,000?
Alternative X has a first cost of 9000 an annual operating cost of 1500, and a salvage value of 2325 after 8 year. Alternative Y has a first cost of 10000 an annual operating cost of 1600 , and a salvage value of 3800 after 8 year. If MARR of 8% per year, approximately what is the PW of each alternative? Select one: O a. PW of X= -16528 and PW of Y= -17313 O b. PW of X= -16860 and PW of Y= -17661 O c. PW of X= -16693 and PW of Y= -17486 O d. PW of X= -16364 and PW of Y= -17142
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
Required information The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ R -250,000 -40,000 3 20,000 Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $- The better alternative is (Click to select) S -370,500 -50,000 5 20,000 and the annual worth of machine S is $-
Compare the alternatives shown below on the basis of their AW and determine which alternative should be selected? Using the interest rate 10% per year. - AW of Alternative X: AW of alternative Y: Which alternative will be selected on the basis of AW analyses? Item Alt. X Alt. Y First cost $ Annual income, S/Year Annual operating cost, S/year Annual cost start at 3rd year Salvage value Life, year 100,000 40,000 10,000 20,000 8 500,000 60,000 30,000 8,000 75
Please no written by hand
A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $36,000, an operating cost of $4000, and a salvage value of $15,000 after 3 years. A Ford model will have a first cost of $32,000, an operating cost of $3100, and also have a $15,000 resale value, but after 4 years. (a) At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis. (b) What are the PW values for each vehicle?
Q. 4
(engineering economic) Four alternatives with cash flows (million rupiah) as follows: Determine the best alternative based on a 12% MARR using the following methods: (a) Rate of Return; (b) Payback Period
I need the answer in 10 minutes please