Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be sélected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,397,151 534,579 Annual operating cost, $ per year 90,383 32,000 Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 8. EGN 3212 - Ec PW for Process A-

Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be sélected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,397,151 534,579 Annual operating cost, $ per year 90,383 32,000 Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 8. EGN 3212 - Ec PW for Process A-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year. Alternative First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years M -155,000 -30,000 8,000 5 N -875,000 -11,000 1,000,000 00 The capitalized cost for alternative M is $- The best alternative selected on the basis of their capitalized costs is alternative M and the capitalized cost for alternative N is $-
A company that manufactures brushes blowers invested $650,000 in an automated quality controlsystem for blower housings. The resultant savings was $160,000 per year for 5 years. If the equipmenthad a salvage value of $50,000, what rate of return per year did the company make? (Initial guess i = 5%)
QUESTION: To improve package tracking at a UPS transfer facility, conveyor equipment was upgraded with RFID sensors at a cost of $300 and has a useful life of 3 years. The operating cost is expected to be $150 per year. The salvage value of the equipment is expected to be $140 for the first 2 years, but due to obsolescence, it won't have a significant value after that. At an interest rate of 10% per year, (a) The economic service life of the equipment and associated annual worth (b) The percentage increase in the AW of cost if the equipment is retained 1 years longer than the ESL determine
Alternative X has a first cost of 9000 an annual operating cost of 1500, and a salvage value of 2325 after 8 year. Alternative Y has a first cost of 10000 an annual operating cost of 1600 , and a salvage value of 3800 after 8 year. If MARR of 8% per year, approximately what is the PW of each alternative? Select one: O a. PW of X= -16528 and PW of Y= -17313 O b. PW of X= -16860 and PW of Y= -17661 O c. PW of X= -16693 and PW of Y= -17486 O d. PW of X= -16364 and PW of Y= -17142
Standby power for pumps at water distribution booster stations can be provided by either gasoline-or diesel-powered engines. The costs for the gasoline engines are as follows: Gasoline First cost, $ Annual M&O, $ per year Salvage value, $ Life, years - 150,000 -41,000 23,000 15 The incremental PW cash flow equation associated with (diesel – gasoline) is 0 = -40,000 + 11,000 (P/A, i, 15) + 16,000(P/F, i, 15) Determine the following: (a) First cost of the diesel engines (b) Annual M&O cost of the diesel engines (c) Salvage value of the diesel engines
A drug store is looking into the possibility of installing a 24/7-automated prescription refill system to increase its projected revenues by $20,000 per year over the next 5 years. Annual expenses to maintain the system are expected to be $5,000. The system will cost $50,000 and will have no market value at the end of the 5-year study period. The store’s MARR is 20% per year. Use the AW method to evaluate this investment.
Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 12% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-130,000 $-45,000 $8,000 2 years The present worth for the DDM method is $ The present worth for the LS method is $ The (Click to select) method is selected. LS $-310,000 $-20,000 $21,000 4 years
Evaluate a combined cycle power plant on the basis of the present worth method when the MARR is 12% per year. Pertinent cost data are as follows: Power Plant (in hundred thousand of P) P 13,000 15 years Investment cost Useful life Market Value (end P 3,000 of year 15) Annual operating P 1,000 expenses Overhaul cost – end P 200 of 5th year Overhaul cost – end P 550 of 10th year
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Subject : Economy and Engineering Management
A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $36,000, an operating cost of $4000, and a salvage value of $15,000 after 3 years. A Ford model will have a first cost of $32,000, an operating cost of $3100, and also have a $15,000 resale value, but after 4 years. (a) At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis. (b) What are the PW values for each vehicle?