Please help!! Table included!! Engineering economics homework!!
Homework Answers
AW of Caterpillar = -20000 * (A/P, 12%,4) + 6500 + 3500 * (A/F, 12%,4)
= -20000 * 0.329234 + 6500 + 3500 * 0.209234
= 647.63
AW of Deere = -26000 * (A/P, 12%,3) + 10000 + 5500 * (A/F, 12%,3)
= -26000 * 0.416349 + 10000 + 5500 * 0.296349
= 804.85
AW of Case = -17000 * (A/P, 12%,5) + 5500 + 3500 * (A/F, 12%,5)
= -17000 * 0.277410 + 5500 + 3500 * 0.157410
= 1334.97
As AW of Case is highest, it should be selected
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Please help!! Table included!! Engineering economics
homework!!
Three mutually exclusive earth-moving pieces of equipment are being...
Three metaly esclusive cath moving piece of equipment are being considered for several tunge balding projects...
Three metaly esclusive cath moving piece of equipment are being considered for several tunge balding projects in India over the next five years. The estimated cash flows for each storative are given below. The construction company's Caterpillar Deore 5.000 52.000 $7.500 $10.000 $4.000 $5.500 $17.500 $5.500 $3,250 Capital investment Net al revenue Salvage value Useful life Click the icon to view the interest and annuity table for discrete compounding when i 2% per year. The Aw of the Caterpillaris Pound...
A high-quality filter for tap water and a reusable drinking container cost $70 and typically will...
A high-quality filter for tap water and a reusable drinking container cost $70 and typically will last for three years. If a family drinks an average of eight cups of water per day (one cup is 8 fluid Ounces), the consumption of water is 547.5 gallons over a three-year period. Tap water costs $0.01 per gallon. Alternatively, bottled water may be purchased in 16-ounce bottles for $1.35 each. Compare the present worth of tap filtered water versus bottled water if...
A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life....
A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life. The firm's MARR is 12% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won't be used for more than five years. End of Year - 1 2 3 4 Annual revenues less expenses $2,000 $2,000 $2,000 $2,000 Abandonment value of machine $6,100 5,000 $4,000 $2,400 Estimated MV. Click the icon...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts -...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E 12% per year 6 years $7,000 $1,300/year Determine whether the statement "If the profit (R-E) is decreased by 6%, this project is not 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 12%...
3. The Capitalpoor Company is considering purchasing a business machine for $100,000. An alternative is to...
3. The Capitalpoor Company is considering purchasing a business machine for $100,000. An alternative is to rent it for $35,000 at the beginning of each year. The rental would include all repairs and service. If the machine is purchased, a comparable repair and service contract can be obtained for $1,100 per year. The salesperson of the business machine firm has indicated that the expected useful service life of this machine is five years, with zero market value at the end...
Need assistance with this question. Part A is: What is the conventional payback period for Option...
Need assistance with this question.
Part A is:
What is the conventional payback period for Option A? Answer
-
What is the conventional payback period for Option B? Answer
-
Part B is:
What is the Present Worth of Option A? Answer -
What is the Present Worth of Option B? Answer -
I really appreciate the assistance
You are considering two investment options. In option A, you have to invest S5,500 now and $700 three years from now. In...
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows...
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? WClick the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
The Balas Manufacturing Company is considering buying an overhead pulley system. The new systern has a...
The Balas Manufacturing Company is considering buying an overhead pulley system. The new systern has a purchase price of $150,000, an estimated useful life and MACRS class life of five years, and an estimated salvage value of $10,000. The system is expected to enable the company to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective products made. A total annual savings of $95,000 will be realized if the new pulley...
Please show the answer clearly Three mutually exclusive earth moving pieces of equipment are being considered...
Please show the answer clearly
Three mutually exclusive earth moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 18% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison Caterpillar Deere Case Capital investment $22,000 $26,200 $17.500 Net annual revenue $7,500 $9,500 $5,000 Salvage value $4,500...
Please help!!! Engineering Economics class homework!! attached below are the tables needed!! first picture is alterna...
Please help!!! Engineering Economics class homework!!
attached below are the tables needed!! first picture is
alternative options, second picture is i=9% values, third picture
is i=18% values!!!
Potable water is in short supply in many countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in China. Doing nothing is not an option. Assume the repeatability of cash flows for alternative 1. a. Use the PW method to determine which system should be selected...
Three metaly esclusive cath moving piece of equipment are being considered for several tunge balding projects in India over the next five years. The estimated cash flows for each storative are given below. The construction company's Caterpillar Deore 5.000 52.000 $7.500 $10.000 $4.000 $5.500 $17.500 $5.500 $3,250 Capital investment Net al revenue Salvage value Useful life Click the icon to view the interest and annuity table for discrete compounding when i 2% per year. The Aw of the Caterpillaris Pound...
A high-quality filter for tap water and a reusable drinking container cost $70 and typically will last for three years. If a family drinks an average of eight cups of water per day (one cup is 8 fluid Ounces), the consumption of water is 547.5 gallons over a three-year period. Tap water costs $0.01 per gallon. Alternatively, bottled water may be purchased in 16-ounce bottles for $1.35 each. Compare the present worth of tap filtered water versus bottled water if...
A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life. The firm's MARR is 12% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won't be used for more than five years. End of Year - 1 2 3 4 Annual revenues less expenses $2,000 $2,000 $2,000 $2,000 Abandonment value of machine $6,100 5,000 $4,000 $2,400 Estimated MV. Click the icon...
Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E 12% per year 6 years $7,000 $1,300/year Determine whether the statement "If the profit (R-E) is decreased by 6%, this project is not 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 12%...
3. The Capitalpoor Company is considering purchasing a business machine for $100,000. An alternative is to rent it for $35,000 at the beginning of each year. The rental would include all repairs and service. If the machine is purchased, a comparable repair and service contract can be obtained for $1,100 per year. The salesperson of the business machine firm has indicated that the expected useful service life of this machine is five years, with zero market value at the end...
Need assistance with this question.
Part A is:
What is the conventional payback period for Option A? Answer
-
What is the conventional payback period for Option B? Answer
-
Part B is:
What is the Present Worth of Option A? Answer -
What is the Present Worth of Option B? Answer -
I really appreciate the assistance
You are considering two investment options. In option A, you have to invest S5,500 now and $700 three years from now. In...
Problem 12-12 (algorithmic) Question Help The tree diagram in figure below describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 12% per year. Based on this information, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW20? WClick the icon to view the tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12%...
The Balas Manufacturing Company is considering buying an overhead pulley system. The new systern has a purchase price of $150,000, an estimated useful life and MACRS class life of five years, and an estimated salvage value of $10,000. The system is expected to enable the company to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective products made. A total annual savings of $95,000 will be realized if the new pulley...
Please show the answer clearly
Three mutually exclusive earth moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 18% per year. Which of the three alternatives, if any, should be adopted? Assume repeatability is appropriate for this comparison Caterpillar Deere Case Capital investment $22,000 $26,200 $17.500 Net annual revenue $7,500 $9,500 $5,000 Salvage value $4,500...
Please help!!! Engineering Economics class homework!!
attached below are the tables needed!! first picture is
alternative options, second picture is i=9% values, third picture
is i=18% values!!!
Potable water is in short supply in many countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in China. Doing nothing is not an option. Assume the repeatability of cash flows for alternative 1. a. Use the PW method to determine which system should be selected...
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