You are considering buying a new lawnmower. The choice is between Sears "Lawn Guy" mower and Canadian Tire's"Clip Job" mower. MARR is 5% and neither mower has a salvage value at the end of its life.Lawn Guy$35010 years$60$30Clip Job$2104 years$40$60First CostLifeAnnual Gas CostsAnnual Maintenancea) Determine which alternative is preferable.b) If a PW approach and a 4-year study period is used, what salvage value for the Lawn Guy mower would result in bothalternatives being equally attractive?

Salvage value is the book value of a resource after all deterioration has been completely…

Answered: You are considering buying a new…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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)
Assume that you are considering to buy a Toyota Corolla automoble. You need to select one of the Diesel and Gasoline option. The related information is given in the following table. The car will be used for 5 years and then it wll be sold. What is the annual average distance that makes Diesel and Gasollne option equivalent (i=10%). Diesel Gasoline Price (TL) Insurance (TL/year) Fuel cost (Lt/TL) 94000 78000 700 700 4.44 5.16 Fuel consumption (Lt/km) Salvage value after 5 years (TL) 0.042 0.058 70000 58000 Select one: a. 17000 O b. 7000 O c. 27000 O d. 37000 e. 12000 f. 19992
1. Find the breakeven market value.2. Find the breakeven annual expense.3. Is the decision more sensitive to changes in market value or annual expense? How doyou know?
Its my 3 time and i have last chance please answer this correctly!!! ( wrong answer will be dislike)
Q5: A construction company is considering purchasing a machine for one of their construction sites. There are two options shown in below table: Initial Cost (S) Annual Maintenance and Operation Cost ($) Salvage Value ($) Life time (years) Machine 1 Machine 2 -100,000 -5000 50,000 5 -150,000 -3500 80,000 10 Considering that required service life is 10 years and purchases are repetable, which machine should be chosen based on a Present Worth comparison analysis, at MARR=10%?
Without using excel
Assume you started a sideline business in commercial photography last year using your then-owned equipment. Due to excellent success, you plan to purchase new equipment and upgrade your studio facility. First cost of equipment, $ Annual expenses, $ per year Annual revenue, $ per year |-160,000 |-45.000 75,000 Determine the no-return payback period. The no-return payback period is | years.
The city of St. John's is intalling a new swimming pool in the east end recreation centre. One design being considered is a reinforced concrete pool that will cost $5,400,000 to install. Thereafter, the inner surface of the pool will need to be refinished and painted every 5 years at a cost of $440,000 per refinishing. Assuming that the pool will have essentially an infinite life, what is the present worth of the costs associated with the pool design? The city uses a MARR of 10%. If the installation costs, refinishing costs, and MARR are subject to 5% or 10% increases or decreases, how is the present worth affected? (NOTE: Text answers are case sensitive and every field in this question is worth equal value) All calculations are performed using 4 significant figures. (a) Complete the table below: Sensitivity Analysis Calculated Values Parameter Construction Costs Refinishing Costs MARR [%] -10% -5% Base Case 5,400,000 440,000 10 +5% +10%
DRAW THE CASH FLOW DIAGRAM Company A is considering two alternatives. Machine A has a first cost of $15,000 and a salvage value of $2,000. The life is 6 years and it has an annual maintenance and operating cost of $1,000. Machine B has a first cost of $18,000, a life of 8 years and no salvage value. The annual operating cost is $800. Which machine should be used to justify the purchase of such machine if money is worth 7% and calculate the difference between the equivalent annual worths.
You are charged with choosing a vendor to produce a new software that is going to benefit your company. The project has a life cycle of 8 years and MARR of 8% annual interest. Part a.) Draw the cash flow diagram for each vendor. Part b.) Calculate a PW cost for each vendor. Part c.) Indicate which vendor you would choose. Task Development Programming Operation Support Vendor M Cost, $ 200,000 150,000 42,000 20,000 40,000 30,000 Time Frame Now Years 1-4 Now Years 1-3 Years 1-8 Years 1-8 Vendor N Cost, $ Time Frame 70,000 60,000 45,000 50,000 35,000 Now Now Years 1-5 Years 1-8 Years 1-8 Vendor O Cost, $ 150,000 Time Frame Years 1-8
Compute for the Annual Worth of MEA1 and explain. Compute using the Annual Worth formula and WITHOUT using Excel sheets. Thank you. MARR = 12%

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