ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Chapter 13, Problem 12P
To determine
To find: Life of machine at which equivalent uniform annual cost is lowest.
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Show complete solutiion. Do not use excel. Manual Method.
Steel drums manufacturer incurs a yearly operating cost of P 200,000. Each drum manufactured cost P 160 and sells for P 300. A machine use for the production has a first cost of P 20,000 and a salvage value of P 2,000 after producing 1,000 units. What is the break even number of units per year?
Economics
Last year, a decision was made to keep the same equipment in lieu of
buying new equipment. The old equipment's trade-in value last year
was $4000 and its value this year is $2000. The operating cost was
$700 last year. If bought last year, the new equipment would have
cost $13K, the salvage value after 8 years would be $2000, and it
would have an annual operating cost of $4000.
If bought last year, what would have been the EUAC of the new
equipment (in dollars) at 16% interest rate per year? (provide your
answer in the box as a negative value if you arrive at costs)
What would have been the correct decision? (provide your answer
and justification in your pdf file submission)
Chapter 13 Solutions
ENGR.ECONOMIC ANALYSIS
Ch. 13 - Prob. 1QTCCh. 13 - Prob. 2QTCCh. 13 - Prob. 3QTCCh. 13 - Prob. 4QTCCh. 13 - Prob. 5QTCCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - Prob. 4PCh. 13 - Prob. 5P
Ch. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Prob. 14PCh. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Prob. 27PCh. 13 - Prob. 28PCh. 13 - Prob. 29PCh. 13 - Prob. 30PCh. 13 - Prob. 31PCh. 13 - Prob. 32PCh. 13 - Prob. 33PCh. 13 - Prob. 34PCh. 13 - Prob. 35PCh. 13 - Prob. 36PCh. 13 - Prob. 37PCh. 13 - Prob. 38PCh. 13 - Prob. 39PCh. 13 - Prob. 40PCh. 13 - Prob. 41PCh. 13 - Prob. 42PCh. 13 - Prob. 43PCh. 13 - Prob. 44PCh. 13 - Prob. 45PCh. 13 - Prob. 46PCh. 13 - Prob. 47PCh. 13 - Prob. 48PCh. 13 - Prob. 49PCh. 13 - Prob. 50PCh. 13 - Prob. 51PCh. 13 - Prob. 52PCh. 13 - Prob. 53PCh. 13 - Prob. 54PCh. 13 - Prob. 55PCh. 13 - Prob. 56P
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Similar questions
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- Pushem down clearing contractors purchases a dozer with delivered price of $470000. The company believes it can sell the used dozer after 4 years (1800 hr/yr) of service for $ 75ooo. There will be no major overhauls. The company's cost of capital is 8.3%, and its tax rate is 35 %, Prpperty taxes. Insurance , and storage will run 5%. what is the owning cost for the dozer? Use the time value method to calculate the deprciation portion of the owner ship cost. ( $ 58.078/hrarrow_forwardWhat life insurance option has a lower premium, is only life insurance, and purchased for a specific period of time. (10, 15, 20 years)arrow_forwardA restaurant sells pizza at a rate of $14.69/slice. Expenses for the restaurant include raw material for pizza at $9.69 per slice, $157.00 as monthly rental and $59.00 monthly as insurance. How many slices should the restaurant sell in a month to break even?arrow_forward
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