Your answer is correct.Based on MARR of 8%, determine the annual rate of production for which the alternatives are equally economical.1252.29 unitsCarry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The tolerance is ±5.Your answer is partially correct. Try again.If it is estimated that production will be 300 top rails per year, which alternative is preferred, and what will be the total annual cost?Preferred alternative:Manufacturing CellTotal annual cost $12100Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±5.Question 7The Fence Company is setting up a new production line to create top rails. The relevant data for two alternatives are shown below.Flow Line Manufacturing CellInstalled CostExpected Life$15,000$10,0005 yearsSalvage Value$05 years$0Variable Cost per Top Rail$6.00$7.00

Explanation Part 1)Part B explanation:

Answered: Your answer is correct. Based on MARR…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the company's MARR is known to be 10%, is the investment justified?
An equipment costing $57,500 is being considered for a production process at Dewey Chemicals. The expected benefits per year is $4,500 and estimated salvage value is $10,000. Determine the rate of return the company can get in this equipment proposal. Equipment life = 15 years.
Can you compute the PW of alternative A, the AW of alternative B, the FW of Alternative C, and the PW of alternative D? Also for a MARR of 12%, rank the MEAs from most profitable to least profitable. HINT: You will need to perform additional calculations before answering this question.
An in place machine has an equivalent annual worth of $-100000 for each year of its maximum remaining useful life of two years. A suitable replacement is determined to have equivalent annual worth values of $-175000, $-125000, and $-150000 per year if kept for 1,2, or 3 years, respectively. When should the company replace the machine, if it uses a fixed 3-year planning horizon? Use an interest rate of 17.255609824% per year compounded semiannualy.
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.
Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $20,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. Part a What is the future worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is £10.
answer asap with diagrams
Machine A costs Q10,000.00, with a recovery value of Q4,000.00 at the end of 5 years and has annual expenses ofoperation of Q5,000.00 during the first three years and Q6,000.00 during the last 2. Machine B costsQ14,000.00, with a recovery value of Q3,000.00 at the end of 10 years. Its operating expenses amount to Q3,500.00annually during the 5 years and Q4,500.00 during the last 5. The increases in operating expenses are theexpected for maintenance, repair and loss of efficiency due to use. The minimum required rate of returnis 15%a) Make the graph and determine the annual cost and make the respective comparison between the two machines.b) Select the most feasible machine.c) Determine the future worth in year 10 for both machines.d) Determine the quarterly value during the 10 years for both machines.e) As an Engineer you are asked to determine an action plan, define objectives, activities to overcome the bestalternative and estimating a new NPV, which exceeds 15% the best optionf)…
Most likely estimates for a project are as follows. Choose the correct choice below. MARR Useful life Initial investment Receipts-Expenses (R-E) Determine whether the statement "This project (based upon the most likely estimates) is profitable." is true or false Click the icon to view the relationship between the PW and the percent change in parameter Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. O False O True 15% per year 6 years $6,500 $1,800/year am
A project has an initial cost of $65,000, expected net cash inflows of $11,000 per year for 12 years, and a cost of capital of 11%. What is the project's MIRR? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost to build the motel is estimated at $8.000.000; Value Lodges estimates furnishings for the motel will cost an additional $700.000 and will require replacement every 5 years. Annual operating and maintenance costs for the motel are estimated to be $800,000. The average rental rate for a unit is anticipated to be $40/day. Value Lodges expects the motel to have a life of 15 years and a salvage value of $900.000 at the end of 15 years. This estimated salvage value assumes that the furnishings are not new. Furnishings have no salvage value at the end of each 5-year replacement interval. Assuming average daily occupancy percentages of 50%, 60%, 70%, and 80% for years 1 through 4, respectively, and 90% for the 5th through 15th years, a MARR of 12%/year, 365 operating days/year, and ignoring the cost of land, should the motel be built? Base your decision on an internal rate of return analysis.…
The maintenance of a machine in a manufacturing plant currently costs a company $8,000 every year (paid at the end of each year) with the cost increasing by $1,000 each subsequent year. Because of this, the plant manager is considering replacing this machine with a newer one which would cost $20,000 to purchase today, and then $4,000/year increasing by $30Ó in each year to maintain (also paid at the end of the year). If the company's MARR is at 8% per year compounded annually, what would be the discounted payback period (in years) for this proposed investment? 4 6. 7

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