Since many U.S. Navy aircraft are at or near their usual retirement age of 30 years, military officials want a precise system to assess when aircraft should be taken out of service. A computational method developed at Carnegie Mellon maps in 3-D the microstructure of aircraft materials in their present state so that engineers can test them under different conditions of moisture, salt, dirt, etc. Military officials can then determine if an aircraft is fine, is in need of overhaul, or should be retired. If the 3-D system allows the Navy to use one airplane 2 years longer than it normally would have been used, thereby delaying the purchase of a $20 million aircraft for 2 years, what is the present worth of the assessment system at an interest rate of 8% per year?

Evaluate a combined cycle power plant on the basis of the FW method when the MARR is 12% per year. Pertinent cost data are as follows :                       Power Plant                (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 WITH DIAGRAM CASH FLOW THANK YOU

A manufacturer producer certain items at a labor cost per unit of P 125, material cost per unit is P150, variable cost of P5.00 each. If the item has a selling price of P750, how many units must be manufactured each month for the manufacturer to breakeven if the monthly overhead is P200,000?

In the breakeven analysis, fixed costs are constant. Over time these expenses can change. Give some examples of fixed costs that change over time.

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $ 885,093 per month. The variable cost per thousand board feet is $ 135 The price charged will be determined by p= $600-0.05D per board feet. Determine the optimum monthly profit for this product.

A manufacturing company has the choice of two suppliers to buy a piece of equipment from to use in its process. Characteristics of these two suppliers and associated costs are tabulated below.  The equipment from supplier A costs more to buy and maintain, but it also has more revenue per unit sold.  Selling enough units will at some point make it worth the higher cost.  How many units per year must the company sell in order to justify using supplier A (i.e. what is the breakeven number of units to sell)?  Use an interest rate of 12% per year.   Supplier A Supplier B Initial cost  $4,000 $3,000 Sale price (revenue per unit) $4 $3 Transportation costs (per unit)  $0 $1.25 Annual maintenance cost $1,400 $1,100 Salvage value $800 $700 Useful life of the equipment (years) 5 4

Two automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the comparison of these systems (System I vs. System II) shows total yearly costs for the number of maps dispensed per year for both alternatives. Answer the following questions. (a) What is the fixed cost for System I? (b) What is the fixed cost for System II? (c) What is the variable cost per map dispensed for System I? (d) What is the variable cost per map dispensed for System II? (e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs? (f) For what range of annual number of maps dispensed is System I recommended? (g) For what range of annual number of maps dispensed is System II recommended? (h) At 3000 maps per year, what are the marginal and average map costs for each system?

For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years A -15,000 -1,600 3.000 (a) = = -10000 (b) = 13200 (c) =6000 (a) = -10000 (b) = -1800 (c) = 4200 3 (a) = -10000 (b) = 13200 (c) = 4200 (a) = -10000 (b) = -1800 (c) = 3000 B -25,000 -400 6.000 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 AOC, $/year -31,000 Overhaul in year 2, $ Salvage value, $ 40,000 Life, years 6 Belt Press -170,000 -35,000 -26,000 10,000 4 The annual worth of the centrifuge system is $- 76216 ✪, and the annual worth of the belt press system is $- 82283.7 The system selected on the basis of the annual worth analysis is the centrifuge system.