Please do fast don't use ai to answer 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$200000, an operating cost of $6000 per quarter, and a salvage value of $30000 after its 2-year life. Package L hasa first cost of $280000 with a lower operating cost of $2200 per quarter and an estimated $30000 salvage valueafter its 4-year life. Which package offers the lower present worth analysis at an interest rate of 20.00% per year,compounded quarterly? (Include a minus sign if necessary.)The present worth of package K is $and that of package L is $(Click to select) offers the lower present worth.

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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 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 $160000, an operating cost of $10000 per quarter, and a salvage value of $40000 after its 2-year life. Package L has a first cost of $240000 with a lower operating cost of $3700 per quarter and an estimated $26000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 8.00% per year, compounded quarterly? (Include a minus sign if necessary.) The present worth of package K is $ -111457.94 -185892.53 X Package L . offers the lower present worth. and that of package L is $
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An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $40,000, an annual operating cost (AOC) of $9000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an AOC of $6000 over its 4-year service life. Method C costs $130,000 initially with an AOC of $4000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 10% of its first cost. Perform both (a) future worth, and (b) present worth analyses to select the method at i = 10% per year.
Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows : Power Plant (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 USING FUTURE WORTH (FW)
A machine used to shread cardboard boxes for composting has a first cost of $10,000, an AOC of $7000 per year, a 3-year life, and no appreciable salvage value. Assume you were told that the service provided by the machine will be needed for only 5 years, which entails a repurchase and retention for only 2 years.What salvage value, S, is required after 2 years in order to make the 2-year AW value the same as it is for its 3-year life cycle AW? Assume i = 10% per year. Solve using factors and, if assigned, using a spreadsheet and Goal Seek.
Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $760,000, an operating cost of $100,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,200,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $-[ and the present worth of process W is $- The process selected on the basis of the present worth analysis is process W
Evaluate a combined cycle power plant on the basis of the FW method when the MARR is 12% per year. Pertinent cost data are as follows : Power Plant (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 WITH DIAGRAM CASH FLOW THANK YOU
Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $660,000, an operating cost of $90,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,100,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $- and the present worth of process W is $- The process selected on the basis of the present worth analysis is process (Click to select) ✓
A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as following: Vendor A has a first cost of $15,000, an annual operating cost of $3,500, a salvage value of $1000, and a service life of 6 years. Vendor B has a first cost of $18,000, an annual operating cost of $3,100, a salvage value of $2,000, and a service life of 9 years. If a study period of 5 years is used and the salvage values are not expected to change, which vendor should be selected? -$26,236, A -$26,636, A -$25,336, A -$24,666, B
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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 $160,000, an operating cost of $7000 per quarter, and a salvage value of $40,000 after its 2-year life. Package L has a first cost of $210,000 with a lower operating cost of $5000 per quarter, and an estimated $26,000 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?
A professional photographer who specializes in wedding-related activities paid $49,000 for equipment that will have a $2000 salvage value after 5 years. He estimates that his costs associated with each event amount to $65 per day. If he charges $300 per day for his services, how many days per year must he be employed in order to break even at an interest rate of 8% per year? The number of days required for break even is determined to be per year.

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