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- Helio Co. owns a large gantry crane for moving around heavy items in their warehouse. The following analysis was done the forklift. What was the interest rate used in this analysis? Year Marginal Cost PWo Sum PWo Total AW 1 $6,500 $6,075 $6,075 $6,500 $7,150 $6,245 $12,320 $6,814 $7,865 $6,420 $18,740 $7,141 4 $8,652 $6,600 $25,340 $7,481 $9,517 $6,785 $32,125 $7,835 7.0% 10.0% 9.0% 5.0% 7.5% 2. 3.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.. A manager has been presented with two proposals for automating a production process. Proposal A involves an initial cost of $15,000 and an annual operating costof $2,000 per year for the next 4 years. Thereafter, the operating cost is expected to increase by $100 per year. This equipment is expected to have a 10-year life with no salvage value.Proposal B requires an initial investment of $28,000 and an annual operating cost of $1,200 per year for the first 3 years. Thereafter, theoperating cost is expected to increase by $120 per year. This equipment is expected to last for 20 years and will have a $2,000 salvage value. If the company's minimum attractive rate of return is 10%, which proposal should be accepted on the basis of present worth analysis?
- As a Project Engineering had been tasked to make an analysis and to recommend to yourcompany on the economic justification on option to purchase a new or 3-year old used truck tobe used for the company's project construction activities as well as providing some rentalbusiness for three years. As the truck is not used for the whole time, 5-days a month it is beingrented out. The new truck having better fuel efficiency and lower maintenance cost. Based onyour data gathering, you have this information derived for the analysis.(Refer to attached image) b) Based on Payback Period evaluation, which unit will you recommend to your management to be purchased and why?Correct only pls. Only the highlighted parts. Npv if pretax cost savings are $100000 per year is -121277. 58. Now how to find the last part.1. A company intends to replace equipment that is no longer able to meet its needs. The two best alternatives are to purchase a manual tool (A1) or an automatic tool (A2). The estimated economic consequences of the two alternatives are: A1 A2 Initial investment ($) 28.000 65.000 Annual withdrawal ($) 14.000 9.000 Additional withdrawal every 5 years ($) 14.000 9.000 Lifespan (years) 10 20 Residual value ($) 8.000 13.000 Based on the present worth analysis, with an interest rate of 15% per year, an analysis period of 20 years, and the assumption of recurrence, determine the best alternative that must be chosen using future worth analysis.
- 2-8 Consider the accompanying breakeven graph for an investment, and answer the following questions as they pertain to the graph. Euros (x104) €40r 585850 35 30 25 20 15 10 s 0 Total Revenue Total Cost 250 500 750 1000 1250 1500 1750 Output (units/year) Give the equation to describe total revenue for x units per year. (b) Give the equation to describe total costs for x units per year. (c) What is the "breakeven" level of x in terms of costs and revenues? (d) If you sell 1500 units this year, will you have a profit or loss? How much?Rerform an EAC analysis and evaluate what decision to make regarding 2 challengers and 1 defender. Elaborate:a) Graphsb) EAC analysisc) Conclude the exercise and make a decision regarding the results Machine N1 (#1 challenger) useful life = 8 years Initial Cost $15,000 MARR 18% Year Operating costs Market value EAC 1 $ 355.00 $ 8,000.00 2 $ 500.00 $ 7,000.00 3 $ 788.00 $ 6,000.00 4 $ 1,000.00 $ 5,000.00 5 $ 1,355.00 $ 4,000.00 6 $ 1,688.00 $ 3,000.00 7 $ 2,012.00 $ 1,000.00 8 $ 2,345.00 $ 0.00Use Rate of Return Method. Answer the given problem below. A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows. Money is worth 17% before taxes to the company. Which machine should be chosen? Machine A Machine B Machine C Machine D (FC) P 24,000 P 30,000 P 49,600 P 52,000 (OC)'year P 1,300 1,360 P 2,020 P P 2,400 P 11,600 P 2,800 (LC)/year P 9,320 P 4,200 P 2,000 (МC) year 1,900 1,300 700 (IT) уear P 720 900 1,488 1,560 Life 5 years 5 years 5 years 5 years
- Q1).Using AW method compare between the following alternatives: Operating and maintenance Alt. F.C. Income at the Annual nd S.V. Useful life i. end of 2 yearIncome A 35000 3500 2800 7000 8 8% B. 32000 1500 4700 2500 8%I need 2 year of Finanical Report of International company and report must b odit with anothor company stam its only for finance project5. A small branch office of a contracting company is planning to purchase a new laser printer. Three vendors have supplied cost, useful life, and estimated salvage value data, shown in the following table. The MARR is 12%. Investment (first) cost Annual service cost Salvage value Useful life A $800 $180/yr $200 5 years Laser printer B $1,400 $150/yr $825 5 years C $900 $170/yr $100 5 years Draw cash flows for these alternatives. If the expected annual saving in labor is $500 regardless of which machine is purchased, what are the annual equivalent values of these alternatives.