Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis.
Machine X Machine Y
Initial cost ($) 300,000 machine x, 400,000 machine y
Annual operation cost ($ per year) 45,000 machine x, 50,000 machine y
Annual operation cost increased by 8% machine x, 300 machine y
Salavage value ($) 70,000 machine x, 95,000 machine y
Life (years) 3 machine x, 6 machine y
We are required to calculate the present worth of the two machines. The useful life of the two machines is different therefore, we have to take the LCM of their useful life in order to determine the common analysis period. Here, LCM of 3 and 6 is 6 years.
Present worth of machine x
Now calculating the present worth of machine Y
The present worth or cost is low for machine Y.
Select machine Y.
Machines that have the following costs are under consideration for a robotized welding process. Using an...
1. Machines that have the following costs are under consideration for a continuous production process. Using an interest rate of 8% per year, determine which alternative should be selected on the basis of an annual-worth analysis. First Cost Annual Operation Cost Salvage Value Life, Years Machine A 50.000 10,000 8,000 Machine B 60,000 15,000 10,000
please dont use excel, show me the formula used 5. Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis. Machine X Machine Y First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years - 250,000 --60.000 70.000 -430.000 -40,000 95.000
You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below. Compare them on the basis of annual worths at i = 12% Machine First Cost Annual Cost per Year Salvage Value $-45,000 $-10,000 $10.000 3 years $-65.000 $-15.000 $16,000 6 vears Life Machine (Click to select) is selected for an improved automated wrapping process.
Required information The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 13% per year and that the inflation rate is 4.9% per year. Machine First Cost, $ M&0, $ per year Salvage Value, $ Life, years А -150,000 -70,000 40,000 B -800,000 -5,000 200,000 00 Which machine should be selected on the basis of an annual worth analysis if the estimates are in future dollars? What is the annual...
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 5.2% per year. 0.000 Machine First Cost, $ M&0. $ per year Salvage Value, $ Life, years -145.000 -70.000 40,000 5.000 00.000 Problem 14.056.a: Compare two alternatives based on their AW values without inflation consideration Which machine should be selected on the basis of an annual worth...
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 5.2% per year. -780.000 Machine First Cost. $ M&O. $ per year Salvage Value, $ Life, years -145,000 - 70.000 40,000 -5,000 200,000 Problem 14.056.b: Compare two alternatives based on their AW values with inflation consideration Which machine should be selected on the basis of an annual...
Question 7 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ -50,000 -65,000 Annual cost, $/year 9,000 - 10,000 Salvage value, s 12,000 25,000 Life, years (Source: Blank and Tarquin) Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Annual Worth of Machine D is: AWD--65,000(P/A, 8%, 6) +25,000(F/A, 8%, 6) -10,000...
Question 2 (20 points) You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below. Using an annual worth analysis, determine which should be selected at i = 9% per year. First cost, $ Annual cost, S/year Salvage value, $ Life, years 40,000 -12,000 20,000 -64,000 -15.000 42.000
Question 3 (25 points) You have two machines under consideration for an imuroved automated wrapping process for Snickers Fun Size candy bars as detailed below. Using an annual worth analysis, determine which should be selected at i = 9% per year. First cost, $ Annual cost, $/year Salvage value, $ Life, years Life " value, 8 -80 - 30.000 -8.000 15,000 -55,00 -55,000 - 10.000 30,000
Question 3 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ -50.000 -65,000 Annual cost, S/year -9,000 -10,000 Salvage value, S 12.000 25,000 Life. years (Source: Blank and Tarquin) Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Annual Worth "AW" of Machine C is: AWC-50,000(P/A, 8%, 3) + 12,000(F/A, 8%, 3)...