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% ?
Q: Problem 05.031 Future Worth Analysis A small strip-mining coal company is trying to decide whether…
A: Option 1: Purchase new clamshellThe purchasing cost of clamshell (P)=$137,500Salvage value of…
Q: 16. The investment cost of a new equipment is P 50,000 and this equipment will have a market value…
A: Hi student, thanks for posting the question. As per the guideline, we are providing answer for the…
Q: In a replacement analysis problem, the following information is available Initial cost : 12.000 YTL…
A: Replacement analysis problem: The decision challenges regarding the replacement of existing old or…
Q: Given the following information, find the optimal indefinite plan. MARR = 12%. Np* = 2, Nc* = 4…
A: Given : ND=2,NC=4 AECD>AEDC AECD=5030 MARR=12%
Q: Two investment projects are being evaluated based on their payback periods. The first alternative…
A: The objective of the question is to calculate the discounted payback period for the first investment…
Q: Required information Based on company records of similar equipment, a consulting aerospace engineer…
A: Present value means the concept of discounting future cash flows to their equivalent value in…
Q: A new city truck can be purchased for P2,400,000. Its expected useful life is six years, at which…
A: Given The initial cost of the truck = 2,400,000 Salvage value =0 Expected useful life =6 year Study…
Q: The Annual Worth (AW) value is comprised of two components. These components are: a. CR + A b. AW…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: MARR = 16% per year, and the alternatives are mutually exclusive. You are supposed to select:…
A: The rate of return (ROR) bills the person as much as the amount of profit or loss that accompany a…
Q: Using exactly the same information from Problem No. 1 above, calculate the Annual Worth of Project Y…
A: Present value refers to the value of a certain project or sum of money that is receivable in the…
Q: Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It has a useful…
A: Given:- (For machine x) Initial cost=$12,000Annual maintenance=$700Life=4 yearsSalvage value=0 (For…
Q: An expansion of the current BIM (Building Information Model) software has been proposed to First…
A: The time period is indicated by ‘n’ and MARR is indicated by ‘i’.
Q: Required Information A government-funded wind-based electric power generation company in the…
A: Given: Interest rate=10% Life=25 years
Q: Determine the IROR and profitability index at 12% per year for an industrial smart-grid system that…
A: The value is established on an assessment of the asset's significance, or the value can be…
Q: The MARR is 7% per year, capital investment is $118,894, annual expense is $32,856, annual revenue…
A: Future value (FW) can be calculated by using the following formula.
Q: A pump for a reservoir must be operated continuously (8,760 hours per year). In the event of a large…
A: MARR is the minimum acceptable rate of return which is used in accumulating or discounting the…
Q: Use Excel
A: Here's how to calculate the minimum number of planes needed for TTA to make building the facility…
Q: FedEx has installed a new radio frequency packages that are incorrectly delivered. The capital…
A: Capital invested= $65000 MARR= 20% EOY Savings 1 $25000 2 $30000 3 $30000 4 $40000 5…
Q: new vending machine is being considered to purchase. The estimated first cost is php 75,000 the…
A:
Q: Q6) A new municipal refuse-collection truck can be purchased for $94,000. Its expected useful life…
A: The purchase price of truck (I) is = $94000 Annual receipts less expenses (A) is = $17000…
Q: $100,000 is invested in equipment having a negligible salvage value regardless of when the equipment…
A: Given information: Equipment cost = $100,000 Operating and maintenance cost (O&M cost) =…
Q: The Ford Motor Company is considering three mutually exclusive electronic stability control systems…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: A company is evaluating two alternatives to produce a new product. The initial cost of Alt Alpha is…
A: To calculate the present value of each alternative, we need to find the present value of the initial…
Q: Part a Determine the ERR for this project. N 3 4 5 6 % $27 $27 $27 $27 $27
A: To calculate the Economic Rate of Return (ERR) for the given cash flow profile, we need to determine…
Q: A municipality is trying to decide on the purchase of a refuse collection vehicle. Two types are…
A: Given information Initial Cost Maintenance cost/year Fuel and oil cost/year Life in…
Q: Consider the following two mutually exclusive projects being considered by an agency. The agency's…
A: Project 1 Project 2 Initial Cost 14300 21500 Annual Revenue 3743 5399 PW 2363 2535
Q: A company would like to purchase a machine for $375,000 with a life of 10 years. They estimate the…
A: Capital recovery is a break-even statistic that refers to recovering initial funds invested in an…
Q: Westdale Manufacturing is reviewing two mutually exclusive options for new equipment with a MARR of…
A: The objective of this question is to calculate the incremental rate of return (AIRR) for two…
Q: Craig Nuts Inc. will need to invest in a new nut cracking machine. The plant engineer has gathered…
A: Given, First Cost : $250,000Annual Benefits : $73,000 in the first year and decreases by $1,200…
Q: NEV, Inc. wants to evaluate two new methods that will improve their productivity. Both alternatives…
A: The minimum acceptable rate of return (MARR) is the rate of return on a certain project that an…
Q: A mining company is performing an economic analysis between two equipment. The initial price for…
A: This can be defined as the tool that is used by the individual, business, or any other organisation…
Q: Calculate the Pl value. The Pl value is
A: The Profitability Index (PI) is a measure of a project’s or investment’s attractiveness. It…
Q: The Gadomski School of Engineering is considering the purchase of a new plasma cutter for the St.…
A: Given information: Manufacturer Miller Hypertherm Tomahawk Initial Cost $2850 $1875 $1200…
Q: Your firm has purchased an injection molding machine at a cost of $100,000. The machine's useful…
A: Answer is in 2nd step:
Q: A power plant operator is considering an investment in increased efficiency of their plant that…
A: We are going to use Present value of future cash approach to answer this question.
Q: A company is considering supplying employees with company cars. Employee travel is expected to be a…
A: Given:Purchase Cost: $22,000Salvage Value: $5,000Insurance Cost: $1,000/yearOperating and…
Q: There are two alternatives P,M. With 15% MARR under 20 years study period, which alternative should…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: DirectJet, is considering leasing one of the following hangars for 10 years. Using ROR analysis and…
A: Present worth, also known as present value, is a financial concept used in capital budgeting,…
Q: Find the capitalized cost at 15%interest. The initial cost for the machinery is $100000. Operating…
A: Given the interest rate = 15% Initial cost = $100000 Operating cost = $4000
Q: Find the conventional payback period for the following project: First Cost $10,000 $500 in Year 1,…
A: The objective of the question is to calculate the conventional payback period for a project. The…
Q: Consider the cashflow (n = 10 years, MARR = e = 14%) Cash Flow A Investment Revenues P 180,000 P…
A: Particular Amount Investment 180000 Revenue 350000 Expenses 400000/year for 3 years and then…
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- A computerized fabricating system has a first cost of $180,000, and an annual operating cost of $84,000 in years 1 and 2, increasing by $5,000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within the useful life of 5 years. Using a MARR of 15% per year, determine the annual worth of total cost when keeping the system for 2 years and 4 years.Your firm is currently paying $3,000 a year to a commercial garbage collection agency to haul waste paper to the city dump. The paper could be sold as waste paper if it were baled and strapped. A paper baler is available at the following conditions: Purchase price = $6,500 Labor to operate baler = $3,500/year Strapping material = $300/year Life of baler = 30 years Salvage value = $500 MARR = 10%/year If it is estimated that 500 bales would be produced per year, what would the selling price per bale to a wastepaper dealer have to be to make this project acceptable? Assume no inflation.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…
- Engineering economy please show solutionConsider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000 Net annual receipts $104,100 $235,000 Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)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 BWhat 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 yearsProblem 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 factory needs to increase its facilities and study two alternatives:Alternative 1: Construction of a reinforced concrete shed at a price of $5 million and a useful life of 40 years. The demolition cost $200,000 and its annual maintenance cost is $100,000.Alternative 2: Construction of a masonry shed at a cost of $3 million and a useful life of 40 years with an expected renovation of $2 million at the end of 20 years and a salvage value of $100,000. The annual maintenance cost is $150,000.Considering a TMAR of 20% per year, what is the best alternative?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 ?The plant manager at a company would like to perform an analysis for a new $250,000 machine. She estimates benefits of $20,000 in the first year, and benefits are increasing by 10% per year. 1) What is the payback period for the machine? 2)Suppose that the machine life is 15 years and machine has a salvage value of 20% of the initial cost at the end of its useful life. If the MARR of the company is 11 % per year, is this investment acceptable? Why?
