Homework Answers
We have the following information
Number of units produced in an hour = 3 units
Three workers are required at a rate of $15/hour
So, the annual variable cost for Alternative 2 is 5X. This is because, 3 workers are needed to produce 3 units in an hour, so it means one worker is needed to produce one unit in an hour. The total rate is $15 per hour which means each one is getting $5 per hour.
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Consider the following two alternatives: Alternative 1 has a first cost of $325,000, an annual maintenance...
Consider the following two alternatives: Alternative 1 has a first cost of $485,000, an annual maintenance and oper...
Consider the following two alternatives: Alternative 1 has a first cost of $485,000, an annual maintenance and operating cost of $20,000, and a salvage value of $125,000. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $325,000, an annual maintenance and operating cost of $13,500, and no salvage value. In order to produce 3 units in an hour three workers are required a rate of...
8) Determine the capitalized cost of an alternative that has a first cost of $155,000, an...
8) Determine the capitalized cost of an alternative that has a first cost of $155,000, an annual maintenance cost of $72,000, and a salvage value of $78,000 after its 10-year life. Use an interest rate of 6%. a. a) $187,142 b.c) $1,256,890 c. d) $1,452,367 d. b) 5871,000 QUESTIONS 9) The construction cost of a park is $600,000. Annual maintenance and operating costs are $120,000 per year. At an interest rate of 10% per year, the capitatlized cost of the...
SITUATION: Two alternatives for a margarita mixer are under consideration. One system, the Mixer-Plus has an...
SITUATION: Two alternatives for a margarita mixer are under consideration. One system, the Mixer-Plus has an initial cost of $6,000. The salvage value after 7 years is expected to be $200. The operating costs including operator wages, routine maintenance, overhauls, etc., is expected to be $2,000 per year. It is expected that this machine will encourage the purchase of an additional 50 drinks per week costing $2.00 apiece to produce and for which $6.00 can be charged. Alternatively, a completely...
SITUATION: Two alternatives for a margarita mixer are under consideration. One system, the Mixer-Plus has an...
SITUATION: Two alternatives for a margarita mixer are under consideration. One system, the Mixer-Plus has an initial cost of $6,000. The salvage value after 7 years is expected to be $200. The operating costs including operator wages, routine maintenance, overhauls, etc., is expected to be $2,000 per year. It is expected that this machine will encourage the purchase of an additional 50 drinks per week costing $2.00 apiece to produce and for which $6.00 can be charged. Alternatively, a completely...
which of the alternatives is the lowest cost based on present worth (PW)? Alternative A has...
which of the alternatives is the lowest cost based on present worth (PW)? Alternative A has initial cost of $5, daily maintence of 0.25% and salvage value of .75 at the end of two weeks. The interest for Alt A is .25%. Alt B has initial cost of 5.50, weekly maintence of 1.50 an salvage value of 1.00 at the end of three weeks. the interest rate of AltB is 1 3/4% per week.
6. Analyze the two economic alternatives described below and seleot the annual interest rate of 7%...
6. Analyze the two economic alternatives described below and seleot the annual interest rate of 7% for both alternatives. All values are in$. best one. Use an Alternative Initial Cost Yearly Operating Expenses Annual Revenues Salvage Value Life (years) 22,000 10,000 2,000 3,000 6,000 10.000 2
3. Compare the alternatives shown below on the basis of their Annual Worth, using an interest...
3. Compare the alternatives shown below on the basis of their Annual Worth, using an interest rate of 12% per year. Alternative I Alternative II 160.000 25,000 First Cost 15.000 3,000 Annual Operating Cost 1,000,000 4,000 Salvage Value Life. Years
1. Alternative R has a first cost of $58,000, annual M&O costs of $26,000, and a...
1. Alternative R has a first cost of $58,000, annual M&O costs of $26,000, and a $10,000 salvage value after 5 years. Alternative S has a first cost of $105,000 and a $50,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 12%.
please answer this i need it asap ill make sure to rate and give thumbs up! 4. The break-even point is to be determined for two production methods, one manual and the other automated. The manual m...
please answer this i need it asap ill make sure to rate and
give thumbs up!
4. The break-even point is to be determined for two production methods, one manual and the other automated. The manual method requires two workers at $18.00 per hour each. Together, their production rate is 40 units per hour. The automated method has an initial cost of $200,000, a 4-year service life, no salvage value, and annual maintenance cost is S5000. The variable cost for...
A company is considering two investment alternatives Alternative A is a new machine that costs $50,000...
A company is considering two investment alternatives Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $9445 per year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $12390 per year Find the Annual worth of each alternative if the company as a MARR of...
Consider the following two alternatives: Alternative 1 has a first cost of $485,000, an annual maintenance and operating cost of $20,000, and a salvage value of $125,000. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $325,000, an annual maintenance and operating cost of $13,500, and no salvage value. In order to produce 3 units in an hour three workers are required a rate of...
8) Determine the capitalized cost of an alternative that has a first cost of $155,000, an annual maintenance cost of $72,000, and a salvage value of $78,000 after its 10-year life. Use an interest rate of 6%. a. a) $187,142 b.c) $1,256,890 c. d) $1,452,367 d. b) 5871,000 QUESTIONS 9) The construction cost of a park is $600,000. Annual maintenance and operating costs are $120,000 per year. At an interest rate of 10% per year, the capitatlized cost of the...
SITUATION: Two alternatives for a margarita mixer are under consideration. One system, the Mixer-Plus has an initial cost of $6,000. The salvage value after 7 years is expected to be $200. The operating costs including operator wages, routine maintenance, overhauls, etc., is expected to be $2,000 per year. It is expected that this machine will encourage the purchase of an additional 50 drinks per week costing $2.00 apiece to produce and for which $6.00 can be charged. Alternatively, a completely...
SITUATION: Two alternatives for a margarita mixer are under consideration. One system, the Mixer-Plus has an initial cost of $6,000. The salvage value after 7 years is expected to be $200. The operating costs including operator wages, routine maintenance, overhauls, etc., is expected to be $2,000 per year. It is expected that this machine will encourage the purchase of an additional 50 drinks per week costing $2.00 apiece to produce and for which $6.00 can be charged. Alternatively, a completely...
6. Analyze the two economic alternatives described below and seleot the annual interest rate of 7% for both alternatives. All values are in$. best one. Use an Alternative Initial Cost Yearly Operating Expenses Annual Revenues Salvage Value Life (years) 22,000 10,000 2,000 3,000 6,000 10.000 2
3. Compare the alternatives shown below on the basis of their Annual Worth, using an interest rate of 12% per year. Alternative I Alternative II 160.000 25,000 First Cost 15.000 3,000 Annual Operating Cost 1,000,000 4,000 Salvage Value Life. Years
1. Alternative R has a first cost of $58,000, annual M&O costs of $26,000, and a $10,000 salvage value after 5 years. Alternative S has a first cost of $105,000 and a $50,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 12%.
please answer this i need it asap ill make sure to rate and
give thumbs up!
4. The break-even point is to be determined for two production methods, one manual and the other automated. The manual method requires two workers at $18.00 per hour each. Together, their production rate is 40 units per hour. The automated method has an initial cost of $200,000, a 4-year service life, no salvage value, and annual maintenance cost is S5000. The variable cost for...
A company is considering two investment alternatives Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $9445 per year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $12390 per year Find the Annual worth of each alternative if the company as a MARR of...
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