The Sundance Detective Agency has purchased new surveillance equipment with the following estimates. The year index isk= 1, 2, 3, ...First cost = $1200Annual maintenance cost = $75 + 5kExtra annual revenue = $250 + 50kSalvage value = $750 for all yearsCalculate the payback period to make a return of 10% per year.The payback period to make a return of 10% per year isyears.

The discounted payback period is a capital budgeting technique used to evaluate the time it takes…

Answered: The Sundance Detective Agency has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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! Required information Eight years ago, Ohio Valley Trucking purchased a large- capacity dump truck for $102,000 to provide short-haul earth-moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,200 per year. A complete overhaul at the end of year 4 costs an extra $3600. Calculate the annual cost of the truck at i = 8% per year. The annual cost of the truck is $- per year.
The operating cost for a machine is $40,000 for year 1 and then it increases by $5,000per year through year 10. The equivalent uniform annual cost for the machine (years 1-10) at an interest rate of 9% per year is calculated as:
A solid waste disposal company borrowed money at 10% per year interest to purchase new equipment needed. If the company got the loan 2 years ago and paid it off with a single payment of $4,600,000, a) Identify the engineering economy symbols and their values (PW, FW, i%, n) b) Draw the cash flow c) Calculate the principal amount P of the loan
A company developed a new product that is projected to have $575,000 in sales in year one. These sales projections grow by 6% a year through year 8. What is the future value of sales 8 years from now. The company uses a MARR of 6% per quarter. Interperiod cashflows earn prorated interest.
Calculate the annual worth of a machine that has an initial cost of $35,000, a life of 10 years, and an annual operating cost of $10,000 for the first 4 years, increasing by 1000 per year hereafter. Use an interest rate of 15% per year.
At CAE, the engineers estimated that a total of $500,000 will be deposited at the end of next year into a saving account for the repair of an old bridges throughout Amman area. Further, they estimate that the deposits will increase by $100,000 per year for only 9 years thereafter, then cease. The present worth, if public funds earn at a rate of 5% per year is
A bulk materials hauler purchased a used dump truck for %50,000. The operating cost was %5,000 per year, with average revenues of %7,500 per year. After 24 years, the truck was sold for %11,000. The rate of return was closest to; Your answer: 6.6% per year 2.6% per year 4.6% per year 7.6% per year
What is the equivalent annual cost in years 1 through 11 of a contract that has a first cost of $70,000 in year 0 and annual costs of $17,000 in years 3 through 11? Use an interest rate of 14% per year. The equivalent annual cost is determined to be
GKX Industries expects sales of its hydraulic seals (in inch and metric sizes) to increase according to the cash flow sequence $70 + 4 k , where k is in years and cash flow is in $1000. (a) What is the amount of the cash flow in year 3?(b) What is the future worth of the entire cash flow series in year 10? Let i=10% per year.
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