The data for new and used machines are shown below: Initial cost($) Annual operating cost ($/year) Salvage value ($) Life (years) Used machine 15,000 8,000 5,000 3 New machine 40,000 2,000 10,000 6 Using an interest rate of 10% per year, determine the present worth of the new machine.
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- From the data shown, determine the ESL of the asset. (Note: Values in the table are AW values, not individual year end values.) AW of First Cost, $ AW of Salvage Value, $ AW of Operating Cost, $ -48000 164000 99,000 -36000 38,095 47000 18,127 -53000 6464 49000 3276 Years Retained 1 2 3 4 5 The ESL of the asset is year(s). -148000 -162000 134000 154000The present worth of the cash flows through year k, PW, for a defender (three-year remaining useful life) and a challenger (five-year useful life) are given in the following table: PW of cash flows through year k, PWK Year Defender Challenger -19640 -15020 2 -27100 -35575 3 -42015 -48120 4 -63000 -87910 Please answer the following questions and attach your handwritten solutions in the next part. Assume that MARR is 10% per year. a) What is the economic service life for both the defender and the challenger, interpret the result based on the ESLS? Answer: b) When should we replace the defender if we use a fixed 5-year planning horizon? Please upload your handwritten answers for both parts here.Golf International Division designs and manufactures small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. (a) Compare the annual worth of the two systems at MARR = 10% per year. Select the better system. Construct the cash flow diagram. (b) Determine the salvage value for the T System that will make the company indifferent between the two systems.
- Required information Akash Uni-Safe in Chennai, India, makes Terminator fire extinguishers. The company needs replacement equipment to form the neck at the top of each extinguisher during production. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years D E -70,000 -15,000 10,000 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. -60,000 -12,000 8,000 Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors. The future worth of machine D is $- 8008 and the future worth of machine E is $- 20280 The machine selected based on the future worth analysis isA company makes bicycles. It buys the tires for bicycles from a supplier. 2 tires are used in one bicycle. According to the information below calculate the Economic Order Quantity for tires. Bicycle production per month: 450 units / month Cost of Tire: $25 / piece Annual Inventory Carrying Cost: 13% Ordering Cost: $50 / orderEconomics No details needed only answer There are three machines in the mechancical engineering lab A B, and Cand need to be evaluated economically. Machine A has a first cost af $4500, an annual operating cost (AOC) of $900, a salvage value of $200, and a service life 4 years. Machine B has a first cost of $3500, an annual operating cost (AOC) of $700, a salvage value of $350 and a service ife 4 years. Machine Chas a first cost of S6000, an annual operating cost (AOC) of $50, a salvage value of $100, and a service life 8 years. What is the present worth for machine C The MARR is 10% per year O $6,250 $6.300 $7,002 $46.222
- Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,950,000 $-680,000 $105,000 8 years Push System $-2,650,000 $-420,000 $60,000 8 years Compare the annual worth of the two systems at MARR = 8% per year. Select the better system. The push system ✓is determined to be the better system.2-A company has requested price offers from two companies for the equipment they will purchase. Estimated cash flows based on the price offers of both companies are as follows. MCFO = %10 А В Initial investment cost,$ -1500000 -2250000 Annual operating cost, $ -700000 -600000 Scrap value, $ Service Life, $ 100000 50000 8 8 a)Using Annual Value Analysis, find out which option will be more economical. b) Solve with esent value analysis.How can the engineers handle unequal Service Life Problemsin Replacement?
- Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,550,000 $-620,000 $90,000 8 years Saved Push System $-2,650,000 $-620,000 $50,000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 11% per year. The salvage value for the push system is determined to be $ in $1000 units.Required information The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,450,000 $-700,000 $120,000 8 years Push System $-2,550,000 $-660,000 $80,000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 12% per year. The salvage value for the push system is determined to be $ 2351611.32 in $1000 units.From the data shown, determine the ESL of the asset. (Note: Values in the table are AW values, not individual year-end values.) Years Retained AW of First Cost, $ AW of Operating Cost, $ AW of Salvage Value, $ 1 -132,000 -32,000 99,000 2 -158,000 -44,000 38,095 3 -130,000 -37,000 18,127 4 -144,000 -53,000 6464 5 -130,000 -41,000 3276 The ESL of the asset is year(s).