solve only 2.24 ....Homework Answers
| PW Method | |||||||||
| Method 1 | Method 2 | Method 3 | MARR @12% | Method 1 | Method 2 | Method 3 | |||
| Initial Cost | t=0 | 40000 | 80000 | 160000 | 1 | 40000 | 80000 | 160000 | |
| Annual Cost | t=1 | 9000 | 6000 | 2000 | 0.893 | 8037 | 5358 | 1786 | |
| Annual Cost | t=2 | 9000 | 6000 | 2000 | 0.797 | 7173 | 4782 | 1594 | |
| Annual Cost | t=3 | 6000 | 2000 | 0.712 | 0 | 4272 | 1424 | ||
| Annual Cost | t=4 | 6000 | 2000 | 0.636 | 0 | 3816 | 1272 | ||
| Annual Cost | t=5 | 2000 | 0.567 | 0 | 0 | 1134 | |||
| Annual Cost | t=6 | 2000 | 0.507 | 0 | 0 | 1014 | |||
| Annual Cost | t=7 | 2000 | 0.452 | 0 | 0 | 904 | |||
| Annual Cost | t=8 | 2000 | 0.404 | 0 | 0 | 808 | |||
| Less | 55210 | 98228 | 169936 | ||||||
| Salvage Value | 12000 | 0.404 | 4848 | ||||||
| 55210 | 98228 | 165088 | |||||||
| Average Cost per year under PW analysis | 27605 | 24557 | 20636 | ||||||
| Actual Cost | |||||||||
| Method 1 | Method 2 | Method 3 | |||||||
| Initial Cost | t=0 | 40000 | 80000 | 160000 | |||||
| Annual Cost | t=1 | 9000 | 6000 | 2000 | |||||
| Annual Cost | t=2 | 9000 | 6000 | 2000 | |||||
| Annual Cost | t=3 | 6000 | 2000 | ||||||
| Annual Cost | t=4 | 6000 | 2000 | ||||||
| Annual Cost | t=5 | 2000 | |||||||
| Annual Cost | t=6 | 2000 | |||||||
| Annual Cost | t=7 | 2000 | |||||||
| Annual Cost | t=8 | 2000 | |||||||
| Total | 58000 | 104000 | 176000 | ||||||
| Less | |||||||||
| Salvage Value | 12000 | ||||||||
| Total Outflow | 58000 | 104000 | 164000 | ||||||
| Average Cost per Year | 29000 | 26000 | 20500 | ||||||
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solve only 2.24 ....
2.23 The Automated Assembly Company is considering three different methods for assembly...
2. A company has to choose one of three different assembly methods. Method A will have...
2. A company has to choose one of three different assembly methods. Method A will have a first cost of $30,000, an annual operating cost of $9,000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6,000 over its 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000 over its 8-year life. Methods A and B will have no salvage...
A metal plating company is considering three different methods for recovering by-product heavy metals from a...
A metal plating company is considering three different methods
for recovering by-product heavy metals from a manufacturing site’s
liquid waste. The investment costs and incomes associated with each
method have been estimated. All methods have a 10-year life. The
MARR is 12% per year. Using internal rate of return method,
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A metal plating company is considering three different methods for recovering by-product heavy metals from a manufacturing site's liquid waste. The investment costs and...
! Required information An electric switch manufacturing company is trying to decide between three different assembly...
! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $35,000, an annual operating cost (AOC) of $6,000, and a service life of 2 years. Method B will cost $78,000 to buy and will have an AOC of $4,500 over its 4-year service life. Method C costs $115,000 initially with an AOC of $7,000 over its 8-year life. Methods A and B will have no...
Two methods can be used to produce solar panels for electric power generation. Method I will...
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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...
wo methods can be used to produce solar panels for electric power generation. Method 1 will...
wo methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $720,000, an AOC of $180,000 per year, and $130,000 salvage value after its 3-year life. Method 2 will cost $850,000 with an AOC of $130,000 and a $160,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the...
Please answer using excel showing equations. Company B must choose one of two methods for its...
Please answer using excel showing equations.
Company B must choose one of two methods for its validation activity. Based on the information below, perform an AW analysis and make recommendation. MARR is 10% per year compounded quarterly. Method Initial Cost Annual Operation Cost Y 250000 200,00 X 100,000 30,000 in year one increasing by 5000 each year 0 3 Salvage Value Estimated Life in Year 0 6
2. A machine can be made by using two different methods. Method X will have a...
2. A machine can be made by using two different methods. Method X will have a first cost of W, an operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method will have a first cost of $140,000, an operating cost of $24.000 per year, and a $19.000 salvage value after its 4-year life. At an interest rate of 10% per year, which method should be used on the basis of an annual worth analysis?
Problem 16.028: Calculate BV for different years using the MACRS method An automated assembly robot that...
Problem 16.028: Calculate BV for different years using the MACRS method An automated assembly robot that cost $378,000 has a depreciable life of 5 years with a $105,000 salvage value. The MACRS (Modified Accelerated Cost Recovery System) depreciation rates for years 1. 2. 3. and 6 are 20.00% 32.00%, 19.20%, and 5.76%. respectively. What is the book value at the end of year 3? Year 5? Year 6? The book value at the end of year 3 is $ The...
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $74,000....
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $74,000. The machine would replace an old piece of equipment that costs $19,000 per year to operate. The new machine would cost $9,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $31,000. The new machine would have a useful life of 10 years with no salvage value Required: 1. What...
2. A company has to choose one of three different assembly methods. Method A will have a first cost of $30,000, an annual operating cost of $9,000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6,000 over its 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000 over its 8-year life. Methods A and B will have no salvage...
A metal plating company is considering three different methods
for recovering by-product heavy metals from a manufacturing site’s
liquid waste. The investment costs and incomes associated with each
method have been estimated. All methods have a 10-year life. The
MARR is 12% per year. Using internal rate of return method,
determine which method should be selected
A metal plating company is considering three different methods for recovering by-product heavy metals from a manufacturing site's liquid waste. The investment costs and...
! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $35,000, an annual operating cost (AOC) of $6,000, and a service life of 2 years. Method B will cost $78,000 to buy and will have an AOC of $4,500 over its 4-year service life. Method C costs $115,000 initially with an AOC of $7,000 over its 8-year life. Methods A and B will have no...
Two methods can be used to produce solar panels for electric power generation. Method I will have an initial cost of $740.000, an AOC of $150,000 per year, and $160,000 salvage value after its 3-year life. Method 2 will cost $890.000 with an AOC of $160,000 and a $140.000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period, You estimate the...
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...
Please answer using excel showing equations.
Company B must choose one of two methods for its validation activity. Based on the information below, perform an AW analysis and make recommendation. MARR is 10% per year compounded quarterly. Method Initial Cost Annual Operation Cost Y 250000 200,00 X 100,000 30,000 in year one increasing by 5000 each year 0 3 Salvage Value Estimated Life in Year 0 6
2. A machine can be made by using two different methods. Method X will have a first cost of W, an operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method will have a first cost of $140,000, an operating cost of $24.000 per year, and a $19.000 salvage value after its 4-year life. At an interest rate of 10% per year, which method should be used on the basis of an annual worth analysis?
Problem 16.028: Calculate BV for different years using the MACRS method An automated assembly robot that cost $378,000 has a depreciable life of 5 years with a $105,000 salvage value. The MACRS (Modified Accelerated Cost Recovery System) depreciation rates for years 1. 2. 3. and 6 are 20.00% 32.00%, 19.20%, and 5.76%. respectively. What is the book value at the end of year 3? Year 5? Year 6? The book value at the end of year 3 is $ The...
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $74,000. The machine would replace an old piece of equipment that costs $19,000 per year to operate. The new machine would cost $9,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $31,000. The new machine would have a useful life of 10 years with no salvage value Required: 1. What...
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