Question

Two pumps are being considered for purchase and will be needed as a continuing requirement. The initial cost of the first pum

solve by hand

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Pump - ONE (A) Initcal cost 2 5600 Salvace Value = Iooo Lte - 5yees goo encreases hmy 950 eah yoL Maintenene cost en 1st yean

Add a comment
Know the answer?
Add Answer to:
solve by hand Two pumps are being considered for purchase and will be needed as a continuing requirement. The initial c...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Two pumps are being considered for purchase. Pump A has an initial cost of $7,000; a...

    Two pumps are being considered for purchase. Pump A has an initial cost of $7,000; a useful life of 12 years and a salvage value of $1,200 at the end of its life. Pump B has an initial cost of $5,000; a useful life of 6 years and a salvage value of $1,000 at the end of its life. Using EUAC and a 7% interest, which pump should be chosen. No answer text provided. Pump B Correct! O Pump A...

  • solve by hand A firm is trying to decide which of the two automated packaging equipment...

    solve by hand A firm is trying to decide which of the two automated packaging equipment to install. For the first option a company can save $44,000 per year in labor but will incur an additional maintenance parts cost after the 3-year warranty period. In year 4, the maintenance parts will cost $900 and will increase in year 5 to 8 by $125 per year. For the second option, the company can save $49,000 per year but will incur additional...

  • 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...

  • 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...

  • 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...

  • A firm is trying to decide which of the two automated packaging equipment to install. For...

    A firm is trying to decide which of the two automated packaging equipment to install. For the first option a company can save $44,000 per year in labor but will incur an additional maintenance parts cost after the 3-year warranty period. In year 4, the maintenance parts will cost $900 and will increase in year 5 to 8 by $125 per year. For the second option, the company can save $49,000 per year but will incur additional yearly maintenance parts...

  • 6-29. Two pumps are being considered for service in Africa. Each can draw water from a...

    6-29. Two pumps are being considered for service in Africa. Each can draw water from a depth of 50 meters and both pumps deliver 60 horsepower (output) to the pumping operation. One of the pumps must be selected. It is expected that the pump will be in use 800 hours per year. The following data are available. If electricity costs $0.14 per kilowatt-hour, which pump should be selected if the MARR is 8% per year? Recall that 1 hp =...

  • 1. Given the costs and benefits of two water pumps, what is the rate of return on the difference ...

    1. Given the costs and benefits of two water pumps, what is the rate of return on the difference of these alternatives? Year -$3000 +800 +800 +800 +800 +800 -$3800 +1200 +1200 +1200 +1200 +1200 What is your choice of these 2 alternatives and why? 2. The manager of a local restaurant is trying to decide whether to buy a charcoal broiling unit or an electric grill for cooking hamburgers. A market study shows customers prefer charcoal broiling but the...

  • ABC Company is planning to purchase an equipment. The purchase price of the equipment is $350,000....

    ABC Company is planning to purchase an equipment. The purchase price of the equipment is $350,000. The company plans to make a down payment of 25% of the first cost, and for the remainder of the cost of the equipment, they plan to take a loan. The company will pay off this loan in 7 years at 10% in equal annual payments. ABC believes that the equipment can be sold for $75,000 at the end of its 15-year service life....

  • A toll bridge across the Mississippi River is being considered as a replacement for the current...

    A toll bridge across the Mississippi River is being considered as a replacement for the current 1-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be $17,300,000, and $310,000 per year in operating and maintenance costs are anticipated. In addition, the bridge must be resurfaced every sixth year of its...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT