Walt Wallace Construction is investigating the purchase of a new dump truck with a 10 year useful life. Annual interest is 9%.The cash flows for two models are: Model Purchase price Annual Operating Cost Annual Income Salvage Value A $50,000 $2,000 $9,000 $10,000 B $80,000 $1,000 $12,000 $30,000 Using the present worth analysis, which truck should be purchased and why? (Show your PW numbers for each option and explain the better choice.)

Walt Wallace Construction is investigating the purchase of a new dump truck with a 10 year useful life. Annual interest is 9%.The cash flows for two models are: Model Purchase price Annual Operating Cost Annual Income Salvage Value A $50,000 $2,000 $9,000 $10,000 B $80,000 $1,000 $12,000 $30,000 Using the present worth analysis, which truck should be purchased and why? (Show your PW numbers for each option and explain the better choice.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You want to buy a new car and use it for 3 years. You have 2 options as presented in the Table below. Option A, buy new car in cash Option B, Lease the same car a) Initial upfront cost $25,000 $4,500 b) Annual maintenance cost $500 (years 1, 2, and 3) c) Annual payment to the dealer (years 1 and 2) $3,000 d) Estimated selling price after 3 years $18,000 a) Draw timelines depicting these two cash flows b) Determine which option is preferable if the interest rate i= 4%
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Rerform an EAC analysis and evaluate what decision to make regarding 2 challengers and 1 defender. Elaborate:a) Graphsb) EAC analysisc) Conclude the exercise and make a decision regarding the results Machine N1 (#1 challenger) useful life = 8 years Initial Cost $15,000 MARR 18% Year Operating costs Market value EAC 1 $ 355.00 $ 8,000.00 2 $ 500.00 $ 7,000.00 3 $ 788.00 $ 6,000.00 4 $ 1,000.00 $ 5,000.00 5 $ 1,355.00 $ 4,000.00 6 $ 1,688.00 $ 3,000.00 7 $ 2,012.00 $ 1,000.00 8 $ 2,345.00 $ 0.00
QUESTION 7 for th below two machines and based on AW analysis which machine we should select? MARR=10%. Machine A First cost, $ Annual cost, $/year Salvage value, $ Life, years 3 Answer the below question: A- the AW for machine A= 25,433 12,199 7,603 Machine B 100,000 7,000 infinite
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QUESTION 7 for th below two machines and based on AW analysis which machine we should select? MARR-10%. Machine A Machine B First cost, $ 100,000 Annual cost, S/year 7,000 Salvage value, $ Life, years 3 infinite Answer the below question: A-the AW for machine A QUESTION 8 For th below two machines and based on AW analysis which machine we should select? MARR-10% Machine A Machine B First cost, $ 135,982 Annual cost, Siyear 8,740 12.308 Salvage value, $ Life, years 3 infinite Answer the below question: B- the AW for machine B QUESTION 9 C-Based on the AW value you got in the previous 2 questions, which machine we should select? type you explanation below For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) B IUS Paragraph M Arial Y 10pt 田饼印园 BE 0) 20,000 9,000 4,000 23,720 4.805- !!! 4
Littrell's Nursery needs a new irrigation system. System one will cost $145,000, have annual maintenance costs of $10,000, and need an overhaul at the end of year six costing $30,000. System two will have first year maintenance costs of $5,000 with increases of $500 each year thereafter. System two would not require an overhaul. Both systems will have no salvage value after 12 years. If Littrell's cost of capital is 4%, using annual worth analysis determine the maximum Littrell's should be willing to pay for system two.
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Need answers ASAP... The annual worth can be calculated from the alternative’s: a. either ( a) or ( b) b. future worth by multiplying by ( F/A, i, n) c. all of the above d. present worth by multiplying by ( A/P, i, n)