The table that follows shows the present worth values of the costs associated with using a presently owned machine (the defender) and a possible replacement (the challenger) for different numbers of years. Determine when the defender should be replaced using an interest rate of 10% per year and a 5- year study period. Show solutions using a spreadsheet. The PW value in $ Is: If in Service This Number of Years 1 2 3 4 Defender -30,000 -75,000 -125,000 -166,000 217000 Challenger -89,000 -50,000 -102,000 -113,000 140.000

The table that follows shows the present worth values of the costs associated with using a presently owned machine (the defender) and a possible replacement (the challenger) for different numbers of years. Determine when the defender should be replaced using an interest rate of 10% per year and a 5- year study period. Show solutions using a spreadsheet. The PW value in $ Is: If in Service This Number of Years 1 2 3 4 Defender -30,000 -75,000 -125,000 -166,000 217000 Challenger -89,000 -50,000 -102,000 -113,000 140.000

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: Hi uncle please send me your number please let me know if you are interested in the company

A: Understanding the QuestionThe original question is: "Hi uncle please send me your number please let…

Q: Period Unit Sales Cost of Sales 1 $590 560 230 400 390 550 2 3 4 5 6 7 8 760 800 200 400 480 620 680…

A: The scatter diagrams are visible portrayals of historical expense and unit data. Sales are shown on…

Q: you have been working as a manager of a fashion store. You saved 50,000 and you decided to use the…

Q: In a company, who gets to determine when and how data should be used?

A: Data refers to individual facts, figures, or bits of information that are often quantitative. A…

Q: Make flow chart of type of budget?

A: budget is a estimate expense and income for certain period of time

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: please could i see a diagram for each?

A: Expansion path is defined as the locus of the least cost combination of inputs for producing…

Q: In a business Finance/Budgeting situation, create a budget for month-long vacation trip to Australia…

A: The technique of controlling one's income and expenses in order to meet financial objectives is…

Q: Advantages and disadvantages of using technology - any ethical challenges?

A: Advantages of using technology Technology leads to increase in innovation.It creates new horizons of…

Q: Please have the answers written to a formula bc I do not use excel to complete the calculations…

A: The term "maturity risk premium" (MRPs) describes receiving a higher return for keeping a securities…

Q: If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was…

A: here we calculate the interest rate charged which are as follow-

Q: qwertyuioopoytttrt

A: Unfortunately, "qwertyuioopoytttrt" doesn't seem to be a question with a specific answer or problem…

Q: Q 1 2 3 4 5 6 7 8 9 10 FC $16 $16 $16 $16 $16 $16 $16 VC ATC $20 $36.00 $27.00 $38 $54 $23.33 $68…

A: In the long run, the market price equals the minimum average total cost (ATC) of producing any…

Q: how is the graph numbered? from what number to what number ?

A: The lowest production frontier is war-hit frontier. That reduces production of both sectors.The…

Q: Connor started with $10 and is saving $2 a week. Carlie started with $16 spending 1 a week. How many…

A: Present worth is a financial concept used to determine the value of future cash flows in today's…

Q: How did you get 5.49 for AVC?

A: Introduction Total cost includes all implicit and explicit cost that comes during production. Total…

Q: Jasmine was interested in how many days it would take an order from Amazon to arrive at her door.…

A: Given; Total number of shipment= 19 shipments Number of shipments arrived on day 1= 4 Number of…

Q: What are speed payments? Could they potentially be ethical? Does it matter where speed money…

A: Speed payments, also known as 'facilitation payments' or 'grease payments', are small bribes paid to…

Q: When I entered my answer in my online math assigment it said it was wrong

A: We use this formula to solve the above problem: A = P(1 + r)t where A is the amount that you get…

Q: You would like to open a hot dog stand at local game stadium. The fixed fee foir this stand is $500…

A: Break even point is the point where total revenue is equal to total cost . Or average cost is equal…

Q: What are the various types of manufacturing costs?

A: There are 4 types of manufacturing cost : 1. Direct Material Cost Direct Material Cost is a cost of…

Q: Fill in the table below, giving a numerical value for letters A, B, C, and D. TC AFC AVC 50 1 90 A B…

A: Total fixed cost is independent of output produced whereas total variable cost varies with the…

Q: Question 32 Which points represent a production level that could lead to unemployment? 12 10…

A: In the context of the production possibility curve (PPC), unemployment is represented by points…

Question

Please solve using Excel spreadsheet and show formulas too please.

The table that follows shows the present worth values of the costs associated with using a presently owned machine (the defender) and a possible
replacement (the challenger) for different numbers of years. Determine when the defender should be replaced using an interest rate of 10% per year and a 5-
year study period. Show solutions using a spreadsheet.
The PW value in $ Is:
If in Service This
Number of Years
1
14
Defender
-30,000
-75,000
-125,000
-166,000
-217,000
Challenger
-89,000
-50,000
-102,000
-113,000
-149,000

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Explanation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

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

do it with pencil and paper
What benefits are their in operating a business to consumer online business model for consumers and the owner?
Imagine you are the mayor of a town and you are trying to decide if you should pay for a fireworks show. Your staff survey your 400 citizens who say that they each value a fireworks show at $10. The fireworks show only costs $3,000 so you put on the show but when you ask for donations to pay for the fireworks you only receive $25 total. What does this result show? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. You staff's survey must have overestimated the value of a fireworks show. b The fireworks cost must have been greater than their economic benefit. The firework show suffered from the Tragedy of the Commons problems d The town's citizens were free-riders.
Prepare a flow chart for a typical family of 4 (3 drivers), taking a two-week (Monday is 1st-14th is a Sunday) vacation driving from New York to Orlando in August. Your return to workday is 15th of the month which is a Monday. Discuss areas of concerned revealed by the flow chart.
What is the unit contribution margin?
What are some of the difficulties and issues that consumers have while using a system that is not integrated?