You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulichoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a presentworth comparison at an interest rate of 11.00% per year? Why is yours the correct choice? (Include a minus sign if necessary.)AlternativeFirst Cost$-30000Maintenance cost, per$-15000YearSalvage Value$3000Life5 yearsY$-75000$-5000$40005 yearsThe present worth of alternative X is $and that of alternative Y is $Alternative (Click to select) is selected by the company.(Click to select)Y

Alternative X:Initial Cost, C_X = $30,000Annual Maintenance Cost, R_X = -$15,000 per yearSalvage…

Answered: You have been asked to evaluate two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Mechanical engineer at Company B is considering five equivalent projects, some of which have different life expectations. Salvage value is nil for all alternatives. Assuming that the company’s MARR is 13% per year, determine which should be selected (a) if they are independent, and (b) if they are mutually (c) Explain why your selection in part (b) is correct. First Cost, $ Net Annual Income, $/Year Life, Years A -20,000 +5,500 4 B −10,000 +2,000 6 C −15,000 3,800 6 D −60,000 +11,000 12 E −80,000 +9,000 12
am. 122.
Production engineers of a manufacturing firm have proposed a new equipment to increase productivity of a manual gas-cutting operation. The initial investment (first cost) is $5,00,000 and the equipment will have a salvage value of $1,00,000 at the end of its expected life of 5 years. Increased productivity will yield an annual revenue of $2,00,000 per year. If the firm's minimum attractive rate of return is 15%, is the procurement of the new equipment economically justified?
None
A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units). Which one should be selected on the basis of a present worth analysis at 10% per year? In-house Contract First Cost, $ -30 Annual Cost, $ per year -5 -2 Annual Income, $ per year 14 3.1 Salvage Value, $ 2 Life. years 5 Approximately, what is the value of (P) if A-340, n=9 years, and i= 8% per year? O a. 2847 O b. 2549 O c. 1763 O d. 2124
Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339
please provide correct answer it would great help
6
A large textile company is trying to decide which sludge dewatering process it should use ahead of its sludge drying operation. The costs associated with centrifuge and belt press systems are shown. Compare them on the basis of their annual worths using an interest rate of 10% per year. System First cost, $ Centrifuge -250,000 -31,000 Belt Press -170,000 -35,000 -26,000 10,000 4 AOC, $/year Overhaul in year 2, $ Salvage value, $ Life, years The annual worth of the centrifuge system is $- The system selected on the basis of the annual worth analysis is the (Click to select) ✓ system. 40,000 6 and the annual worth of the belt press system is $-
A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units) in Table below. Which one should be selected on the basis of Present Worth (PW) analysis at 10% per year? In-house Contract First cost, $ Annual cost, $ Annual income, $ per year Salvage value, $ Life, years -30 per year -5 -2 14 3.1 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Present Worth Sinking Fund Compound Capital Recovery A/P Present Gradient Gradient Amount Amount Worth Present Worth Uniform Series F/P P/F A/F F/A P/A P/G A/G 1 1.1000 0.9091 1.00000 1.0000 1.10000 0.9091 1.2100 0.8264 0.47619 2.1000 0.57619 1.7355 0.8264 0.4762 3 1.3310 0.7513 0.30211 3.3100 0.40211 2.4869 2.3291 0.9366 4 1.4641 0.6830 0.21547 4.6410 0.31547 3.1699 4.3781 1.3812 0.6209 0.5645 0.5132 1.6105 0.16380 6.1051 0.26380 3.7908 6.8618 1.8101 6 1.7716 0.12961…
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