Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 21P
Determine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable? (5.4)
a A negative market value means that there is a net cost to dispose of an asset.
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Students have asked these similar questions
Determine the FW of the following engineering project when the MARR is 17% per year. Is the project acceptable?
Proposal A
Investment cost
$10,500
Expected life
4 years
Market (salvage) valueª
- $1,000
Annual receipts
$9,000
$4,000
Annual expenses
³ A negative market value means that there is a net cost to dispose of an asset.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 17% per year.
The FW of the following engineering project is $. (Round to the nearest dollar.)
Determine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable? (5.4)
*A negative market value means that there is a net cost to dispose of an asset.
Investment cost Expected lifeMarket (salvage) value* Annual receiptsAnnual expenses
$10,000 5 years -$1,000 $8,000 $4,000
Determine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable?
Proposal A
Investment cost
Expected life
Market (salvage) value
Annual receipts
$11,000
5 years
-$1,000
S7,000
$4,000
Annual expenses
"A negative market value means that there is a net cost to dispose of an asset
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year
The FW of the follawing engineering froject is $ (Round to the nearest dollar.)
Chapter 5 Solutions
Engineering Economy (16th Edition) - Standalone book
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- A$ 100,000 machine replacement project indicates that it can generate, after-tax cash flows, $ 35,000 per year over its 10-year useful life. At the end of this period, it could be sold for $ 10,000. Considering a Minimum Attractive Rate of Return (MARR) of 10% per year, select the equation by notation of factors that calculates your Net Present Value -100000 + 35000 (P/A,10%,9) + 10000 (P/F,10%,10) -100000 + 35000 (P/A,10%,9) + 45000 (P/F,10%,10) 100000 – 35000 (P/A,10%,9) – 45000 (P/F,10%,10) -100000 + 35000 (P/F,10%,10) + 10000 (P/A,10%,10)arrow_forwardA company would like to invest on a project. The rate the company uses to justify their investments, i.e. the MARR is 25% per year (compounded yearly). Their estimations about the projects are as follows: Initial Cost: ($300,000)The Study Period: 15 yearsSalvage (Market) Value of the Project: 20% of the initial cost 1-) What is the capital recovery cost, CR? 2-) Operating costs in the first year are estimated to be ($7,500) and these operating costs are estimated to increase by 5% per year. Construct cash flow table and determine the minimum amount of annual revenue ($ per year?) that makes this investment an attractive option for the company? (i.e. what is Equivalent UNIFORM (Annual) Cost, EU(A)C?) 3-) Benefits in in the first year are estimated to be $30,000 and these benefits are estimated to increase by 13% per year. Construct cash flow table and determine the net present value/worth of the project, NPW. 4-) What is the simple payback period? 5-) Determine IRR of…arrow_forwardHow would I solve part A and B ? Thank you..arrow_forward
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