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Two pumps are being considered for purchase. Pump A has an initial cost of $7,000; a...
solve by hand Two pumps are being considered for purchase and will be needed as a continuing requirement. The initial c...
solve by hand
Two pumps are being considered for purchase and will be needed as a continuing requirement. The initial cost of the first pump is $5,600, and it has a salvage value at the end of its 5 year life of $1,000. Maintenance cost is estimated to be $800 the first year and increase $50 per year to the end of its 5 year life. The other pump costs $6000 and has a salvage value at the end of...
2. Analysis period different from useful lives (5 Points) Two pumps are being considered for purchase...
2. Analysis period different from useful lives (5 Points) Two pumps are being considered for purchase for a service life of 10 years. Interest rate is 5% Pump 2 $60,000 $75,000 $12,000 11 years $15,000 Pump 1 Alternatives Initial Cost Estimated salvage value at end of useful life Useful Life Estimated market value, end of 10-year $10,000 6 years $12,000 (1) Develop the cash flow diagram for both alts. (1 point) (2) Apply the present worth technique, which pump should...
8 percent interest Initial cost End-of-useful life salvage value 2000 1000 Useful life, in years 126...
8 percent interest
Initial cost End-of-useful life salvage value 2000 1000 Useful life, in years 126 Pump A because it has a higher EUAC 2000 Useful life, In years 12 Pump A because it has a higher EUAC Pump A because it has a lower EUAC Pump B because it has a lower EUAC An answer cannot be computed because the useful life of the pumps is not the same Pump B because it has a higher EUAC pump should...
Analysis period different from useful lives (5 Points) wo pumps are being considered for purchase for a service lif...
Analysis period different from useful lives (5 Points) wo pumps are being considered for purchase for a service life of 10 years. Interest rate is 5% Alternatives Pump 1 Pump 2 Initial Cost $60,000 $75,000 Estimated salvage value at end of useful life $10,000 $12.000 Useful Life 6 years 11 years Estimated market value, end of 10-year $12,000 $15,000 (1) Develop the cash flow diagram for both alts. (1 point) (2) Apply the present worth technique, which pump should be...
Problem 7: Two pumps are being considered for pumping water from a reservoir. Installed cost and...
Problem 7: Two pumps are being considered for pumping water from a reservoir. Installed cost and salvage value for the two pumps are given below. Pump A Pump B Installed Cost$20,000 $25,000 Salvage Value$2,000 $4,000 Pump A has a service life of 4 years. Determine the service life of pump B at which the two pumps are competitive if the annual effective interest rate is 15%. To be competitive, pump B must have the same capitalized cost as pump A.
Two pieces of equipment are being considered for purchase. If interest is 15%. which piece of...
Two pieces of equipment are being considered for purchase. If interest is 15%. which piece of equipment should be purchased? Use Annual Cash Flow Analysis to solve: 4. A $8,000 $2,000 $1,200 12 yr. B PW Cost EUAB $5,000 $1,000 $ 700 Salvage Value Useful Life 3 yr. EUAW A EUAWB ATION Best Alter
Two pieces of equipment are being considered for purchase. If interest is 15%. which piece of equipment should be purchased? Use Annual Cash Flow Analysis to...
Two 180-horsepower water pumps are being considered for installation in a farm. Financial data for these...
Two 180-horsepower water pumps are being considered for installation in a farm. Financial data for these pumps are in the table below. If power cost is a flat 4 cents per kWh over the study period, determine the minimum number of hours of full-load operation per year that would justify the purchase of the more expensive pump at an interest rate of 14% (1 HP = 746 watts = 0.746 kilowatts). Click the icon to view the additional information Click...
Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500...
Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500 $400 $300 200 200 200 year Uniform benefit at end of 100 125 100 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
1. A new pipeline is installed. Annual maintenance and pumping costs are considered to be paid in...
1. A new pipeline is installed. Annual maintenance and pumping costs are considered to be paid in their entireties at the end of the years in which their costs are incurred (assume that maintenance happens in year 10). The pipe has the following costs and properties: Initial cost $7,500 Annual interest rate 5% Service life 10 years Salvage value $500 Annual maintenance $500 Pump cost/hour $2.75 Pump operation 2000 hours/year What is the equivalent uniform annual cost (EUAC) of the pipe?
Do not use Excel or tables 9-54 Three mutually exclusive alternatives are being considered: Initial cost...
Do not use Excel or tables
9-54 Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500 $400 $300 200 200 200 100 4 year Uniform benefit at end of 100 125 subsequent years Useful life, in years At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
solve by hand
Two pumps are being considered for purchase and will be needed as a continuing requirement. The initial cost of the first pump is $5,600, and it has a salvage value at the end of its 5 year life of $1,000. Maintenance cost is estimated to be $800 the first year and increase $50 per year to the end of its 5 year life. The other pump costs $6000 and has a salvage value at the end of...
2. Analysis period different from useful lives (5 Points) Two pumps are being considered for purchase for a service life of 10 years. Interest rate is 5% Pump 2 $60,000 $75,000 $12,000 11 years $15,000 Pump 1 Alternatives Initial Cost Estimated salvage value at end of useful life Useful Life Estimated market value, end of 10-year $10,000 6 years $12,000 (1) Develop the cash flow diagram for both alts. (1 point) (2) Apply the present worth technique, which pump should...
8 percent interest
Initial cost End-of-useful life salvage value 2000 1000 Useful life, in years 126 Pump A because it has a higher EUAC 2000 Useful life, In years 12 Pump A because it has a higher EUAC Pump A because it has a lower EUAC Pump B because it has a lower EUAC An answer cannot be computed because the useful life of the pumps is not the same Pump B because it has a higher EUAC pump should...
Analysis period different from useful lives (5 Points) wo pumps are being considered for purchase for a service life of 10 years. Interest rate is 5% Alternatives Pump 1 Pump 2 Initial Cost $60,000 $75,000 Estimated salvage value at end of useful life $10,000 $12.000 Useful Life 6 years 11 years Estimated market value, end of 10-year $12,000 $15,000 (1) Develop the cash flow diagram for both alts. (1 point) (2) Apply the present worth technique, which pump should be...
Problem 7: Two pumps are being considered for pumping water from a reservoir. Installed cost and salvage value for the two pumps are given below. Pump A Pump B Installed Cost$20,000 $25,000 Salvage Value$2,000 $4,000 Pump A has a service life of 4 years. Determine the service life of pump B at which the two pumps are competitive if the annual effective interest rate is 15%. To be competitive, pump B must have the same capitalized cost as pump A.
Two pieces of equipment are being considered for purchase. If interest is 15%. which piece of equipment should be purchased? Use Annual Cash Flow Analysis to solve: 4. A $8,000 $2,000 $1,200 12 yr. B PW Cost EUAB $5,000 $1,000 $ 700 Salvage Value Useful Life 3 yr. EUAW A EUAWB ATION Best Alter
Two pieces of equipment are being considered for purchase. If interest is 15%. which piece of equipment should be purchased? Use Annual Cash Flow Analysis to...
Two 180-horsepower water pumps are being considered for installation in a farm. Financial data for these pumps are in the table below. If power cost is a flat 4 cents per kWh over the study period, determine the minimum number of hours of full-load operation per year that would justify the purchase of the more expensive pump at an interest rate of 14% (1 HP = 746 watts = 0.746 kilowatts). Click the icon to view the additional information Click...
Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500 $400 $300 200 200 200 year Uniform benefit at end of 100 125 100 subsequent years Useful life, in years 4 At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
Do not use Excel or tables
9-54 Three mutually exclusive alternatives are being considered: Initial cost Benefit at end of the first $500 $400 $300 200 200 200 100 4 year Uniform benefit at end of 100 125 subsequent years Useful life, in years At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected (a) Based on the payback period? (b) Based on benefit-cost ratio analysis?
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