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 $
Polypropylene wall caps, used for covering exterior vents for kitchen cooktops. bathroom fans, dryers, and other building air exhausts. can be made by two different methods. Method X will have a first cost of $75,000. an operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method Y will have a first cost of $140,000. an operating cost of $24,000 per year, and a $19,000 salvage value after its 4-year life. At an interest rate of 10% per year, which method should be used on the basis of an annual worth analysis? 10% TABLE 15 Discrete Cash Flow: Compound interest Factors 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Amount Capital Recovery Present Sinking Fund Compound Amount Present Gradient Gradient Worth Worth Present Worth Uniform Series F/P P/F A/F F/A A/P P/A P/G A/G L1000 110000 0.9091 09091 08264 10000 0.47619 0.30211 10000 04762 0.9366 12100 21000 0.57619 0.40211 1.7355 13310 0.7513 3.3100 2.4869 23291 14641 06830 0.21547 4,6410…
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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.
An IE works in the automation department of a surgical equipment manufacturing company that produces specially ordered equipment for hospitals. To upgrade the quality of the assembly process of the camera used in laparoscopic surgery probes, two approaches are available: make and buy. The make alternative has an initial equipment cost of $175,000, a life of 5 years, a $25,000 salvage value, a processing cost of $3,000 per camera, and an M&O cost of $95,000. The buy alternative requires contracting the assembly operation externally at a cost of $7,500 per camera. If the MARR is 12% per year, how many cameras per year must be assembled to justify the make alternative? 30 cameras must be assembled per year to justify the make alternative.
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)
Ecology group wishes to purchase a piece of equipment for recycling of various metals. Machine 1 costs $300000, has a tife of 10 years, an annual cost of $30000, and requires one operator at a cost of $72 per hour. It can process 10 tons per hour. Machine 2 costs $180000, has a life of 6 years, an annual cost of $15000, and requires two operators at a cost of $72 per hour each to process 6 tons per hour. Determine the annual breakeven tonnage of scrap metal at i=10% per year.
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.
No written by hand solution An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $30,000, an annual operating cost (AOC) of $4,000, and a service life of 2 years. Method B will cost $70,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $115,000 initially with an AOC of $3,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 6% of its first cost.
Please no written by hand solutions 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 $210,000, an operating cost of $9,500 per quarter, and a salvage value of $40,000 after its 2-year life. Package L has a first cost of $270,000 with a lower operating cost of $3,100 per quarter and an estimated $21,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 16% per year, compounded quarterly? The present worth of package K is $ -330204 Numeric ResponseEdit Unavailable. -330204 incorrect.and that of package L is $ . offers the lower present worth.
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

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