Tim Smunt has been asked to evaluate two machines. After some investigation, hedetermines that they have the costs shown in the following table:Machine AMachine BOriginal Cost$12,000$20,000Labor per year$2,400$4,400Maintenance per year $4,000$1,200Salvage value$1,600$7,500He is told to assume that:1. The life of each machine is 33 years.2. The company thinks it knows how to make 88% on investments no more riskythan this one.3. Labor and maintenance are paid at the end of the year.1. What is the NPV Value of Machine A?2. Calculate the NPV for Machine B3. Using the net present value as the basis of comparing the machines, Tim shouldrecommend Machine A or B?

To calculate the net present value (NPV) of each machine, we need to consider the initial cost,…

Answered: Tim Smunt has been asked to evaluate…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

Question 2 The imports of a company were as follows: Price per unit (in Pula) Number of units Product 2012 2022 2012 2022 A 5.00 12.00 2500 2800 B 6.50 14.50 5000 4950 C 10.00 16.00 3500 4300 Use 2012 as base year to calculate: The price index of Laspeyeres. The price index of Paasche. The quantity index of Laspeyeres. The quantity index of Paasche. Hence find the Fishers Price and Fishers Quantity Indexes.
The company has data on demand and factory capacity for the next 4 months as in the table. Unit cost with regular time $ 24, overtime cost $ 28, on subcontract $ 34. Storage costs $ 2 per unit per month; backorders cost $ 5 per unit per month. Initial inventory is as many as 120 units, and it is expected that by the end of July there will be an inventory of 100 units. April May June July Demand 460 450 480 480 Regular Capacity 370 370 380 380 Overtime Capacity 60 60 60 60 Subcontract Capacity 30 30 30 30 Use the transportation method to optimize the aggregate plan. Determine the production cost each month and the total cost for 4 months
Question 2
The method that is used to calculate employees pay according to different levels of production is: a. Differential pay b. Straight commission c. Variable commission d. Straight piece rate
Find the total cost of the following shipment of materials: 23 floor boxes listed at $4.00 each, less 15% ; 150 half-inch conduits listed at $0.60 each, less 20% ; 125 convenience outlets listed at $0.79 each, less 10% ; 83 single-pole flush switches listed at $0.45 each, less 30%.
A researcher believed that the number of rental cars in service by a car rental company would have an impact on the total annual revenue for that car rental company. Five small car rental companies were surveyed, with the number of Cars in service recorded in units of 1000 (so if a car rental company had 54000 cars in service, a 54 would be recorded) and Annual Revenue measured in millions of dollars (so an Annual Revenue of $10,000,000 would be recorded as 10). The data follows: Cars (1,000s) Annual Revenue ($ millions)11.5 118 10.0 135 9.0 100 5.5 37 3.3 32 Part of the Excel-generated Simple Linear Regression output is provided below: ANOVA df SS MS F Significance F Regression 1 7891.863897 7891.863897 22.91180151 0.017339231 Residual 3 1033.336103 344.4453677 Total 4 8925.2 Coefficients Standard Error t Stat P-value Intercept -19.12490108 23.1658578…
QUESTION 2 A tailor has the following materials available: 16 square yards of cotton, 11 square yards of silk, and 15 square yards of wool. A suit requires 2 square yards of cotton, 1 square yard of silk, and 1 square yard of wool. A gown requires 1 square yard of cotton, 2 square yards of silk, and 3 square yards of wool. Suppose the profit P is $30 on a suit and $50 on a gown. Find the maximum profit that can be made and the corresponding number of suits and gowns that yield the maximum profit. $ 310 Numbef of suits sold to gain max. profit. 7 Numbef of gowns sold to gain max. profit. 2
QUESTION 17 Farris Billiard Supply considers to manufacture its own brand of pool cues. Upon analyzing the costs, the manager determines that the materials and labor cost for each cue is $25, and the fixed cost is $2,400 per week. If the selling price is set at $40 each, what is the total profit in dollar if 250 pool cues are sold in a week?
In 1997 Fuller and coworkers at Texas A&M University estimated the operating costs of cotton gin plants of various sizes. The operating costs of the next to the smallest plant is shown in the following table. x 2000 4000 6000 8000 10000 12000 y 163,200 230,480 301,500 376,160 454,400 536,400 Here x is the annual number of bales produced, and y is the dollar total cost. (Use 4 decimal places in your answer.)A. Determine the best fitting line using least squares. Also determine the square of the correlation coefficient.The best fitting line is C(x) = .The square of the correlation coefficient is r2 = .B. The study noted that revenue was $63.25 per bale. At what level of production will this plant break even?The revenue equation is R(x) = The profit equation is P(x) = The production will break even when bales are produced.C. What are the profits or losses when production is 3000 bales? 4000 bales? (Round to the nearest cent.)When…
An entrepreneur who owns and operates two businesses (A and B) would like to analyze their profitability. They would like your help in the analysis. They give you the annual net profit (in thousands of $) for each business from 2008-2020. Table 1: Annual Net Profits for Businesses A and B Business Year Profit Business Year Profit 2008 -50 2008 -10 2009 57 2009 30 2010 71 2010 27 2011 64 2011 22 2012 60 2012 21 2013 50 2013 20 A 2014 41 2014 24 2015 59 2015 24 2016 71 2016 32 2017 71 2017 36 2018 74 2018 37 019 81 20 40 2020 97 2020 49 a. Suppose you want to graph the distribution of profits. Explain why using only one stem- plot might not be optimal for the analysis. b. Describe the correct stemplot to use. Generate this stemplot. Explain your steps. What can you say about the distribution from this stemplot? c. When are stemplots useful? And why is that? d. Suppose that instead of having 26 observations you have 200 observations. What graph should you generate? e. What other type of…

Recommended textbooks for you

Advanced Engineering Mathematics

Advanced Math

ISBN:

9780470458365

Author:

Erwin Kreyszig

Publisher:

Wiley, John & Sons, Incorporated

Numerical Methods for Engineers

Advanced Math

ISBN:

9780073397924

Author:

Steven C. Chapra Dr., Raymond P. Canale

Publisher:

McGraw-Hill Education

Introductory Mathematics for Engineering Applicat…

Advanced Math

ISBN:

9781118141809

Author:

Nathan Klingbeil

Publisher:

WILEY

Advanced Engineering Mathematics

Advanced Math

ISBN:

9780470458365

Author:

Erwin Kreyszig

Publisher:

Wiley, John & Sons, Incorporated

Numerical Methods for Engineers

Advanced Math

ISBN:

9780073397924

Author:

Steven C. Chapra Dr., Raymond P. Canale

Publisher:

McGraw-Hill Education

Introductory Mathematics for Engineering Applicat…

Advanced Math

ISBN:

9781118141809

Author:

Nathan Klingbeil

Publisher:

WILEY

Mathematics For Machine Technology

Advanced Math

ISBN:

9781337798310

Author:

Peterson, John.

Publisher:

Cengage Learning,

Basic Technical Mathematics

Advanced Math

ISBN:

9780134437705

Author:

Washington

Publisher:

PEARSON

Topology

Advanced Math

ISBN:

9780134689517

Author:

Munkres, James R.

Publisher:

Pearson,

SEE MORE TEXTBOOKS