Q: A professional photographer who specializes in wedding-related activities paid $47,500 for equipment…
A: Salvage value is the estimated resale value of an asset at the end of its useful life. It is…
Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…
A: Given,solar cell installation cost = $7,000Annual cost of inspection, cleaning etc = $1,250Useful…
Q: Advanced Technologies, Inc. is evaluating two alternatives to produce its new plastic filament with…
A: Given both alternatives have negative or outflow of cashflow, we will compare both alternatives…
Q: You and your partner have become very interested in cross-country motorcycle racing and wish to…
A: Present value is the value of investment in today's dollar. The present worth is the current value…
Q: Your friend is considering a new exhaust system for his Lamborghini Diablo. The estimates from the…
A: The annual worth method that will be used to compare Shop X and Shop Y. The annual value method can…
Q: A semiautomatic process has fixed costs of $40,000 per year and variable costs of $30 per unit. An…
A: Break even point is where the revenue and the cost equate, which symbolizes that there is a…
Q: Dexcon Technologles, Inc., Is evaluating two alternatives to produce its new plastic filament with…
A: Method DDM LS First Cost 140000 480000 M&O 30000 35000 Salvage Value 6000 29000 Life 2 4
Q: A chemical engineer is considering two styles of pipes for moving distillate from a refinery to the…
A: Present value is the value of an expected cash flow or series of cash flows at the present time,…
Q: You and your partner have become very interested in cross-country motorcycle racing and wish to…
A: Present worth (PW) is the current estimate of a sum of money that will occur in the future.…
Q: An expansion of the current BIM (Building Information Model) software has been proposed to First…
A: The time period is indicated by ‘n’ and MARR is indicated by ‘i’.
Q: A process can be completed using either Alternative X or Y, where Y is an automated version of X.…
A: The Fixed cost(FC) is the cost that is being incurred to procure fixed inputs, like – buildings,…
Q: Two processes can be used for producing a polymer that reduces friction loss in engines. Process T…
A: The cost structure of process T and process W is shown below:Process TProcess WFirst cost…
Q: An injection molding system has a first cost of $170000 and an annual operating cost of $73000 in…
A: Annual worth (AW) is an economic metric used to convert a series of future cash flows into equal…
Q: Bennington Health purchased three dialysis systems each at an installed cost of $100,000 for…
A: Expected Annual Worth (EAW) is a financial analysis tool used to compare different alternatives or…
Q: A chemical processing corporation is considering two methods to dispose of a non-hazardous chemical…
A: The present Worth Comparison technique is to look at the expense and advantages of the present year…
Q: either of the following two equations can be applied to determine the amount necessary to recover…
A: The given information: Present value (P) = 50,000 Salvage value (S) = 5,000 Time period (n) = 5…
Q: A tractor for over-the-road hauling is to be purchased by AgriGrow for $90,000. It is expected to be…
A: Given information Initial cost=$90000 Salvage value after 6 years=$4000 Transport cost…
Q: A new antitheft system incorporating MEMS technology is being separately evaluated economically by…
A: Present value, is a calculation that actions the value of a future amount of cash or stream of…
Q: Leroy purchased an AI-based robotics system with the first cost of $345,000, an AOC of $148,000 per…
A: The annual worth is the net of the multitude of advantages and costs caused north of a one-year…
Q: rial machine costing produce net casn savings of $4,000 per year. The machine has a five-year useful…
A: Net present value (NPV) is the difference between the present worth of cash inflows and the present…
Q: A delivery car had a first cost of $32,000, an annual operating cost of $15,000, and an estimated…
A: The annual worth is the net of all the benefits and costs incurred over a one-year period.…
Q: An environmental engineer wants to evaluate three different methods for disposing of nonhazardous…
A: Annual worth is a term used to describe a method of evaluating the economic value or cost of a…
Q: A recent graduate who wants to start an excavation/ earth-moving business is trying to determine…
A: a. Cash flow of each year using excel is shown in below table.
Q: The National Potato Cooperative purchased a deskinning machine last year for $150,000. Revenue for…
A: Salvage value refers to that amount of fixed asset which remains un-allocated in the form of…
Q: For some years, Mel has contracted with several major pizza retailers for home delivery services. He…
A: Here's a brief explanation of the process:Calculate Costs and Revenues: Identify all relevant costs…
Q: An oil refinery finds that it is necessary to treat the waste liquids from a new process before…
A: The measure that depicts uniform costs of estimated receipts and expenditure of the project life…
Q: Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is…
A: The table below presents each method's cost structure:Method 1Method 2Initial…
Q: For some years, Mel has contracted with several major pizza retailers for home delivery services. He…
A: Given, New Van :Cost : 137,500 with economic life of 6 yearsTrade in value : 45,000AOC of…
Q: Process A has a fixed cost of $190,000 per year and a variable cost of $58 per unit. For Process…
A: According to the given information, fixed cost of Process A is $190,000, variable cost of Process A…
Q: Johnston Implants is planning new online patient diagnostics for surgeons while they operate. The…
A: In the present worth analysis, we find the present values of all the cashflows. If the value of…
Q: Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with…
A: Present worth, also known as present value, is the current monetary value of future cash flows or…
Q: A presently owned machine can last 3 more years if properly maintained at a cost of $13,000 per…
A: Given, Cost : $13,000 per year AOC : $27,000 per year After 3 years, it can be sold for $10,000…
Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…
A: The MARR is a economic and funding thought used in a range of decision-making processes, in…
Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…
A: Future value can be calculated by using the following formula.
Q: Icing a new engine. Process A Will have a first cost of P750,000, an operating cost of P60,000 000…
A: *Answer: Given: Process T: First cost =$ 750,000 , Operating cost =$ 60,000 per year , Salvage…
Q: Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of…
A: The present worth of each option is the discounted value of future cash flows. It is the present…
Q: An independent contractor for a transportation company needs to determine whether she should upgrade…
A: Given upgrading cost= 4700operating cost of upgraded vehicle= $1450 per year.Salvage value=…
Q: Two methods can be used to produce expansion anchors. Method A costs $90,000 initially and will have…
A: Present worth analysis is a method which compare the cash flow of each alternatives and compare…
Q: Two processes can be used for producing a polymer that reduces friction loss in engines. Process T…
A: Net Present Worth (NPW) serves as a crucial financial metric utilized in capital budgeting,…
Q: Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is…
A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…
Q: A professional photographer who specializes in wedding-related activities paid $49,000 for equipment…
A: here by using the annual worth formula we calculate the number of year by using the given…
Q: Because of international competition, a company that manufactures high-speed submersible rotary…
A: Given; Company can invest= $80000 After one year:- FV=-80000(F/P,i,n)+20000+20000(F/A,i,n)…
Q: The MARR is 7% per year, capital investment is $118,864, annual expense is $30,127, annual revenue…
A: To calculate Annual Worth we first calculate the present value. Present value = Net cash…
Q: An oil refinery finds that it is necessary to treat the waste liquids from a new process before…
A: machine A 1st Year Cost = 20,000 each year costs fall by 2,000 Machine B Fixed cost per year =…
Two insulation thickness alternatives have been proposed for a process steam
line subject to severe weather conditions. One alternative must be selected.
Estimated savings in heat loss and installation cost are given below. Which thickness would you recommend for a MARR = 15% per year and negligible market (salvage) values? The study period is 12 years.
![Thickness Installed Cost Annual Savings
Life
2 cm
5 сm
$20,000
$5,000
$7,500
4 years
6 уears
$40,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b0d3f27-b6f0-4abe-b29d-c145fe1f77a0%2F6e00fc60-e406-4888-a460-70564cf0e62c%2F6hr2xud_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- As a project engineer, you received the AW analysis below from the finance department. It is for a new piece of equipment you ordered some months ago. You were told the interest rate used was 10% per year, but no first cost or projected salvage value was provided and you want to know them. Determine the values of P and S using the AW values for the year 3. Note: The AW values are equivalent values through the given year, not costs for the single year. Years Retained AW of First Cost, $ AW of Operating Cost, $ per Year AW of Salvage Value, $ 1 -51,700 -15,000 35,000 234 -27,091 -17,000 13,810 -18,899 -19,000 6,648 -14,827 -21,000 4,309 5 -12,398 -23,000 2,457 The value of P is $ 25,149.07 and the value of S is $ 8,853.89 ХJ. Doe must choose between two different models. The analysis period considered is 6 years. Model 1 has a life of four years with a first cost of $13,500 and maintenance costs of $1,250 per year in years 2, 3, and 4 (no maintenance costs in year 1). The salvage value for this model at the end of its life is $4,271 (For year 2 the salvage value is $7,594). Model 2 has a life of three years with a first cost of $15,000 and maintenance costs of $700 per year. Its salvage value at the end of its life is $9,300 (year 3). Which of the two models should be chosen by J. Doe if considering a MARR of 12%.A professional photographer who specializes in wedding-related activities paid $16,000 for equipment that has a $2000 estimated salvage value after five years. He estimates that his costs associated with each event amount to $65 per day. If he charges $300 per day for his services, how many days per year must he be employed in order to break even at an interest rate of 8% per year?
- A new antitheft system incorporating MEMS technology is being separately evaluated economically by three engineers at Dragon Technologies. The first cost of the equipment will be $90,000, and the life is estimated at 6 years with a salvage value of $9000. The engineers made different estimates of the net savings that the equipment might generate. Jacob made an estimate of $9,000 per year. Susan states that this is too low and estimates $18,000, while Tyler estimates $21,000 per year before tax. If the MARR is 8% per year, use PW to determine if these different estimates will change the decision to purchase the equipment. The present worth of the pessimistic estimate is $ The present worth of the most likely estimate is $ The present worth of the optimistic estimate is $ The equipment purchase by the pessimistic estimate is not justified The equipment purchase by the most likely estimate is not justified The equipment purchase by the optimistic estimate is justifiedABC Beverage, LLC, purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The finish on the anodized aluminum surface is produced by mechanical finishing technologies called brushing or bead blasting. Engineers at Wald are switching to more efficient, faster, and cheaper machines to supply ABC. Use the estimates and MARR = 8% per year to select between the two alternatives. Brush Alternative Bead Blasting Alternative P $-400,000 $-400,000 n 6 years large Salvage Value $50,000 no value AOC Nonlabor $-60,000 in year 1, decreasing by $2500 annually starting in year 2 $-70,000 per yearTwo processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $660,000, an operating cost of $90,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,100,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $- and the present worth of process W is $- The process selected on the basis of the present worth analysis is process (Click to select) ✓
- Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with low friction properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 16% per year, which alternative has the better present worth and what is that value (select the closest value)? Method First Cost AOC, per Year Salvage Value Life DDM $170,000 $65,000 $4,000 2 years LS $350,000 $40,000 $29,000 4 years DDM with a PW--$473,000 LS with a PW --$445,900 LS with a PW --$222,055 DDM with a PW--$109,300Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (ie.. low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 10% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-190,000 $-55,000 $4,000 2 years The present worth for the DDM method is $ The present worth for the LS method is $ The LS method is selected. LS $-430,000 $-25,000 $39,000 4 yearsTwo methods can be used to produce expansion anchors. Method A costs $70,000 initially and will have a $18,000 salvage value after 3 years. The operating cost with this method will be $29,000 in year 1, increasing by $4000 each year. Method B will have a first cost of $130,000, an operating cost of $6000 in year 1, increasing by $6000 each year, and a $40,000 salvage value after its 3-year life. At an interest rate of 14% per year, what are the present worth of Method A and Method B? a. PWA = $-133,655 PWB = $-129,647 PWB = $-125,178 PWB = $-129,647 PWB = $-125,178 O b. PWA $-133,655 = O C.PWA $-150,260 O d. PWA = $-150,260 =
- An automobile leasing company has a contract with a new car dealer to do major repairs for $720 per car. The leasing company estimates that for $400,000, it could buy equipment to service their own cars at a cost of $300 per car. If the equipment will have a salvage value of 10% of its first cost after 15 years, the minimum number of cars that must require major servicing each year to justify the equipment at a MARR of 10% per year is closest to: (a) 88 (b) 122 (c) 128 (d) 143An industrial machine costing $10,000 will produce net cash savings of $4,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR is 10% per year. What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to ± $2,000 changes in the repair cost. Perform the sensitivity analysis. Fill-in the table below. (Round to one decimal place.) Change in the repair cost - $2,000 $0 IRR 21.05% 9.61 % Is the project acceptable? Yes NoA portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction firm for $24,000. The instrument will be used for 6 years and be worth $1,000 at that time. The annual cost of use and maintenance will be $11,000. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $28,500, with use and maintenance costs of only $7,500 and salvage value after 6 years of $2,500. The marginal tax rate is 25%, and MARR is an after-tax 12%.Determine which alternative is less costly, based upon comparison of after-tax annual worth. select an alternative Show the AW values used to make your decision:Alternative 1: $enter a dollar amount Alternative 2:
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)