What is the smallest acceptable annualincome from a project which has a $92,498 investment cost and a $9,936salvage value is the life is 15 years andthe MARR is 15% ?

The problem is asking for the smallest acceptable annual income from a project. This is essentially…

Answered: What is the smallest acceptable annual…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Apricot Computers is considering replacing its material handling system and either purchasing or leasing a new system. The old system has an annual operating and maintenance cost of $31,000, a remaining life of 8 years, and an estimated salvage value of $5,300 at that time. A new system can be purchased for $259,000; it will be worth $24,000 in 8 years; and it will have annual operating and maintenance costs of $16,000/year. If the new system is purchased, the old system can be traded in for $19,000. Leasing a new system will cost $25,000/year, payable at the beginning of the year, plus operating costs of $7,100/year, payable at the end of the year. If the new system is leased, the old system will be sold for $9,000. MARR is 15%. Compare the annual worths of keeping the old system, buying a new system, and leasing a new system based upon a planning horizon of 8 years. Click here to access the TVM Factor Table Calculator For calculation purposes, use 5 decimal places as displayed in the…
Three independent project R, S, & T. If the PW of these projects at MARR is as follows: PWS= $80,000, PWR = -$50,000, PWT = $70,000. Write down the bundles that you can be immediately excluded from the analysis.
Answer part A Answer part B
What is the payback period for a project with the following characteristics, given a minimum attractive rate of return (MARR) of 12%? First Cost $20,000 Annual Benefits $8,000 Annual Maintenance $2,000 in year 1, then increases by $500 per year Salvage value $2,000 Useful Life 10 years
Problem 05.024 Alternative Comparison - Different Lives You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $250,000, an operating cost of $5,500 per quarter, and a salvage value of $30,000 after its 2-year life. Package L has a first cost of $170,000 with a lower operating cost of $3,500 per quarter and an estimated $25,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 8% per year, compounded quarterly? The present worth of package K is $[ and that of package L is $[ (Click to select) offers the lower present worth.
A $45,000 investment in a new conveyor system is projected to improve throughput and increasing revenue by $14,000 per year for five years The conveyor will have an estimated market value of $4,000 at the end of five years. Using an MARR = 12% per year, what is the FW? $-19,329.40 $13,635.70 $16,998.90 none of the above K ?

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What is the smallest acceptable annual income from a project which has a $ 92,498 investment cost and a $9,936 salvage value is the life is 15 years and the MARR is 15% ?