Two machines X and Y below are being considered for purchase.Machine XMachine YInitial CostUniform annual benefit2001200100300Salvage valueLife, year15031606If the MARR is 5% which machine should be bought?Machine YMachine X

Given informations: Initial cost of machine X = 200 The initial cost of machine Y = 1200

Answered: Two machines X and Y below are being…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer question 9.69 using excel and show steps clearly please
6-4 A An electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and main- tain in the first year and $3000 in each later year. At the end of 4 years, the firm changed their inspec- tion procedure, eliminating the need for the device. The purchasing agent was very fortunate to sell the inspection device for $60,000, the original price. Compute the equivalent uniform annual cost during the 4 years the device was used. Assume interest at 10% per year.
A city engineer is considering two alternatives for the local water supply. Make a present-worth comparison of the equal-service machines for which the cost are shown below, if i-10% per year. %3! TYPE A TYPE B First cost, P Annual operating cost (AOC) 900 Salvage value, SV Life, years $3000 $4000 700 350 200 15 Which alternative machine should be selected and why?
Typed plz and asap thanks
9-83 Assume a cost improvement project has only a first cost of $100,000 and a monthly net savings, M. There is no salvage value. Graph the project's IRR for payback periods from 6 months to the project's life of N years. The firm accepts projects with a 2- year payback period or a 20% IRR. When are these standards consistent and when are they not? (a) Assume that N = 3 years. (b) Assume that N = 5 years. (c) Assume that N = 10 10 years. (d) What recommendation do you have for the firm about its project acceptance criteria?
Two machines are being considered for purchase. If the MARR (for this problem, also the minimum required interest rate) is 10%, which machine should be bought?
4. Calculate the present worth of a machine which costs $80000 initially and will have a $18000 salvage value after 11 years. The operating cost is $10000 at the end of yearl and amounts increasing by $800 each year. Use an interest rate of 9% per year.
answer and discuss pls
8- The life of a project is 10 years. An equipment is needed for this project. Two alternatives are available. Equipment A has an initial cost of $5000.00, an annual maintenance cost of $300.00, and a salvage value of $800.00 after 5 years. Equipment B has an initial cost of $7000.00, an annual maintenance cost of $400.00, lasts for 10 years and has no salvage value. If the interest rate is 6%: a) Equipment A should be purchased. b) Equipment B should be purchased. c) No equipment should be purchased. d) There is no difference in choosing between A or B.
Solve using excel. Show your steps
which process line should be built for a new chemical? the expected market for the chemical is 16 years. an 18% rate is used to evaluate new process facilities, which are compared with present worth. how much does the better choice save? First cost O &M cost/year salvage life A $14 M $2.5 M $2 M 8 years B 22 M 3 M 7.5 M 16 years

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Two machines X and Y below are being considered for purchase. Machine X 200 Machine Y 1200 Initial Cost Uniform annual benefit 100 300 Salvage value Life, year 150 160 3 6. If the MARR is 5% which machine should be bought? O Machine Y Machine X