The following maintenance alternatives are considered for a new assembly line that has an a cost of $250,000. Each has distinct service life expectancies and corresponding probabilitie the maintenance regime most likely to yield an annualized overall cost less than $32k, giver rate of 7%. Maintenance regime S0 throughout life $25000 (in year 4) $35,000 (years 3 and 6) $75,000 (year 6) 7 (0.2) 8 (0.15) 10 (0.25) 12 (0.3) Service life years (probability) 8 (0.6) 10 (0.5) 12 (0.5) 13 (0.33) 9 (0.2) 12 (0.35) 14 (0.25) 15 (0.37)

The following maintenance alternatives are considered for a new assembly line that has an a cost of $250,000. Each has distinct service life expectancies and corresponding probabilitie the maintenance regime most likely to yield an annualized overall cost less than $32k, giver rate of 7%. Maintenance regime S0 throughout life $25000 (in year 4) $35,000 (years 3 and 6) $75,000 (year 6) 7 (0.2) 8 (0.15) 10 (0.25) 12 (0.3) Service life years (probability) 8 (0.6) 10 (0.5) 12 (0.5) 13 (0.33) 9 (0.2) 12 (0.35) 14 (0.25) 15 (0.37)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Calculate the expected flow rate (barrels per day) for each oil well using the estimated probabilities. Estimated Flow, bbl/Day 100 200 300 400 Probability of Flow North well 0.15 0.75 0.10 0.0 East well 0.35 0.15 0.45 0.05
A project with uncertainty is under consideration for implementation. The values are shown in the table below. Calculate the Expected Value of the Net Present Worth of this project. n Proba FC Annual Benefit ProbaB 7% ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) $50,000 $22,000 $37,000 $20,000 $5,000 $95,000 8 23% 43% 55% 35% 7% 8. 35% 7% 8 21% 7% 7% 7% 27% 65% 10 75% 10 85% 10 10% 5%
Solve neatly with proper explanation
1. A piece of construction equipment was bought 3 years ago for $ 500,000, expected life of 8 years and a salvage value of $20,000. The annual operating cost for this equipment is $58,000. It now can be sold for $200,000. An alternative piece of equipment can now be bought for $ 600,000, a salvage value of $150,000 and an expected life of 10 years. The annual operating cost for this equipment is $15,000. At MARR= 10% should we replace the old equipment? Use both EAC and P.W. Replace O Not replace
11
with-given-formula-solutionpls explain too
A project has an uncertain first cost and useful life. What is the expected value for each variable? First Cost $300,000 400,000 600,000 Probability 0.2 0.5 0.3 Useful Life 4 5 6 0.3 0.5 0.2 Probability
Current Attempt in Progress Mandy is considering investing in an opportunity that would require an upfront cost of $ 520 but would pay $ 150 per year for each of the next 6 years. If Mandy chooses to invest in this opportunity, what would be the IRR? Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.5. Should Mandy invest in this opportunity if her personal MARR is 20%?
A reactor for your plant has an initial capital cost of $100,000 and useful life of 5 years.However, there is uncertainty about the annual costs and benefits of the unit as shown in theprobability tables below:
Please answer
I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.
Give typing answer with explanation and conclusion