The marginal cost of keeping the defender in service for one more year is $
Discrete Compounding; i 18% Single Payment Uniform Series Sinking Fund Factor To Find A Compound Amount Factor To Find F GivenP FIP 1.1800 1.3924 1.6430 1.9388 2.2878 Present Worth Factor To Find P GivenF PIF 0.8475 0.7182 0.6086 0.5158 0.4371 Compound Amount Factor To Find F Given A FIA 1.0000 2.1800 3.5724 5.2154 7.1542 Present Worth Factor To Find P GivenA PIA 0.8475 1.5656 2.1743 2.6901 3.1272 Capital Recovery Factor To Find A GivenP AIP 1.1800 0.6387 0.4599 0.3717 0.3198 Given AIF 1.0000 0.4587 0.2799 0.1917 0.1398 2 3 4
Homework Answers
Economic analysis of challenger
| Year | Discount factor | O&M cost | PV (O&M) | Cumulative (O&M) | Cumulative (O&M) + Initial Cost | Salvage value | PV (Salvage value) | NPV | (A/P,18%,n) | EUAC |
| A | B | C | D=C*B | E | F=E+42500 | G | H=G*B | I=F-H | J | K = I*J |
| 1 | 0.8475 | 9000.00 | 7627.50 | 7627.50 | 50127.50 | 30000.00 | 25425.00 | 24702.50 | 1.1800 | 29148.95 |
| 2 | 0.7182 | 14500.00 | 10413.90 | 18041.40 | 60541.40 | 26000.00 | 18673.20 | 41868.20 | 0.6387 | 26741.22 |
Minimum EUAC of challenger is 26741 at 2 yrs, so economic life is 2 yrs
EUAC of defender = 26000*(A/P,18%,1) + 16000 - 18500 = 26000*1.18 + 16000 - 18500 = 28180
As minimum EUAC of challenger is less than EUAC of defender, so defender should be replaced immediately
Add Answer to:
A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present ...
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...
I am confused on how to find the ATCF's A construction company is considering whether to...
I am confused on how to find the ATCF's
A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $640,000 with annual costs of $44,000. At the end of the 4 years the equipment can be sold for an estimated $384,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will cost...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $35,000 for installation and will have an estimated economic life of 14 years and a $2,000 MV at that time. It is estimated that annual expenses will average $17,000 per year. The defender has a present BV of $6,000 and a present MV of $4000. Data for the defender for...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $29,000 for installation and will have an estimated economic life of 12 years and a $2,200 MV at that time. It is estimated that annual expenses will average $11,000 per year. The defender has a present BV of $5,000 and a present MV of $3500. Data for the defender for...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $35,000 for installation and will have an estimated economic life of 14 years and a $2,000 MV at that time. It is estimated that annual expenses will average $17,000 per year. The defender has a present BV of $6,000 and a present MV of $4000. Data for the defender for...
A city water and waste-water department has a four year old sludge pump that was initially purchased for 65,000. This pu...
A city water and waste-water department has a four
year old sludge pump that was initially purchased for 65,000. This
pump can be kept in service for an additional 4 years, or it can be
sold for 36,000 and replaced by a new pump. The purchase price of
the replacement pump is 51,500. The projected MVs and operating
maintenance cost over the four year planning horizon are shown in
the table that follows. Assuming the MARR is 8%, A. determine...
An existing robot can be kept if 2,100 is spent now to upgrade it for future service requirements. Alternatively, the co...
An existing robot can be kept if 2,100 is spent now to
upgrade it for future service requirements. Alternatively, the
company can purchase a new robot to replace the old robot. the
following estimates have been developed for both the defender and
the challenger. The company's before tax MARR is 25% per year.
Based on this information, should the existing robot be replaced
right now? Assume the robot will be needed for an indefinite period
of time.
The AW value...
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...
The replacement of a planning machine is being considered by the Reardom furniture company. the best challenger will cos...
The replacement of a planning machine is being
considered by the Reardom furniture company. the best challenger
will cost 32,000 for installation and will have an estimated
economic life of 11 years and a 1,500 MV at that time. it is
estimated that annual expenses will average 12,000 per year. the
defender has a present bv of 5,500 and a present mv of 4000. data
for the defender for the next three years are given below. using a
before tax...
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...
I am confused on how to find the ATCF's
A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $640,000 with annual costs of $44,000. At the end of the 4 years the equipment can be sold for an estimated $384,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will cost...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $35,000 for installation and will have an estimated economic life of 14 years and a $2,000 MV at that time. It is estimated that annual expenses will average $17,000 per year. The defender has a present BV of $6,000 and a present MV of $4000. Data for the defender for...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $29,000 for installation and will have an estimated economic life of 12 years and a $2,200 MV at that time. It is estimated that annual expenses will average $11,000 per year. The defender has a present BV of $5,000 and a present MV of $3500. Data for the defender for...
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $35,000 for installation and will have an estimated economic life of 14 years and a $2,000 MV at that time. It is estimated that annual expenses will average $17,000 per year. The defender has a present BV of $6,000 and a present MV of $4000. Data for the defender for...
A city water and waste-water department has a four
year old sludge pump that was initially purchased for 65,000. This
pump can be kept in service for an additional 4 years, or it can be
sold for 36,000 and replaced by a new pump. The purchase price of
the replacement pump is 51,500. The projected MVs and operating
maintenance cost over the four year planning horizon are shown in
the table that follows. Assuming the MARR is 8%, A. determine...
An existing robot can be kept if 2,100 is spent now to
upgrade it for future service requirements. Alternatively, the
company can purchase a new robot to replace the old robot. the
following estimates have been developed for both the defender and
the challenger. The company's before tax MARR is 25% per year.
Based on this information, should the existing robot be replaced
right now? Assume the robot will be needed for an indefinite period
of time.
The AW value...
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...
The replacement of a planning machine is being
considered by the Reardom furniture company. the best challenger
will cost 32,000 for installation and will have an estimated
economic life of 11 years and a 1,500 MV at that time. it is
estimated that annual expenses will average 12,000 per year. the
defender has a present bv of 5,500 and a present mv of 4000. data
for the defender for the next three years are given below. using a
before tax...
Most questions answered within 3 hours.
-
Suppose you plan to invest $5,000 each year (beginning at the
end of this year) into...
asked 1 minute ago -
What is the cell potential of the following cell at 25
oC? Note Au is a...
asked 2 minutes ago -
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim...
asked 4 minutes ago -
DNA to Protein
Describe the mutation that created the HbS allele:
type of mutation, location of...
asked 8 minutes ago -
1a)When a 5000-kg roller coaster train full of riders approaches
the loading dock at a speed...
asked 9 minutes ago -
Which attribute allows you to specify a custom "thumbnail" for
multimedia elements?
asked 9 minutes ago -
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6)
QUESTIONS:
The following is a December 31,...
asked 11 minutes ago -
1. Why are the advantages and disadvantages of object-oriented
databases? 2. What are data marts? How...
asked 28 minutes ago -
A Porsche challenges a Honda to a 4.00×102m race. Because the
Porsche's acceleration of 3.30 m/s2...
asked 29 minutes ago -
A sample of C3H8 has 1.60×1024 H atoms.
How many carbon atoms does the sample contain?...
asked 1 hour ago -
How many unique codes are possibly formed from two characters,
where the first character can be...
asked 51 minutes ago -
A concentration cell is built based on the reaction:
2H+ + 2e- ----> H2
The pH...
asked 47 minutes ago