Machine A | Machine B | |||
Total cost | 18000 | 38000 | ||
Salvage | 1500 | 2000 | ||
Maint | 1200 | 700 | ||
Usage years | 6 | 12 | ||
Interest | 8% | 8% | ||
Fixed cost | Total Cost-Salve/Age | Cost per year | Total Cost-Salve/Age | Cost per year |
Total cost-Salvage | 16500 | 2750 | 36000 | 3000 |
Interest | (Total Cost+Salvage/2)*i/100 | |||
i=interest | 19500 | 9750 | 40000 | 20000 |
Interest per year | 780 | 1600 | ||
Cost at the end of one year | 3530 | 4600 | ||
By the end of 1st year Machine A will be cheaper by | 1070 |
ENGR 1110 Comparing Economic Alternatives Two machines are being considered for the same task. Machine A costs $18,...
compare after 12 years ENGR 1110 Comparing Economic Alternatives Two machines are being considered for the same task. Machine A costs $18,000 new and is estimated to last 6 years. The cost to replace machine A after 6 years will be $23,000. Machine A will cost $1,200 per year to operate/maintain and it will have a trade-in (salvage) value of $1,500. Machine B costs $38,000 to buy, will last 12 years and will have a trade in value of $2,000....
compare after 12 years ENGR 1110 Comparing Economic Alternatives Two machines are being considered for the same task. Machine A costs $18,000 new and is estimated to last 6 years. The cost to replace machine A after 6 years will be $23,000. Machine A will cost $1,200 per year to operate/maintain and it will have a trade-in (salvage) value of $1,500. Machine B costs $38,000 to buy, will last 12 years and will have a trade in value of $2,000....
The maintenance cost is incurred at the end of the year Two machines are being considered for the same task. Machine A costs $18,000 new and is estimated to last 6 years. The cost to replace machine A after 6 years will be $23,000. Machine A will cost $1,200 per year to operate/maintain and it will have a trade-in (salvage) value of $1,500. Machine B costs $38,000 to buy, will last 12 years and will have a trade in value...
Please compare after 12 years and include cash flow diagram for A and B. Two machines are being considered for the same task. Machine A costs $18,000 new and is estimated to last 6 years. The cost to replace machine A after 6 years will be $23,000. Machine A will cost $1,200 per year to operate/maintain and it will have a trade-in (salvage) value of $1,500. Machine B costs $38,000 to buy, will last 12 years and will have a...
0 Homework Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $38,000 and a remaining useful life of four years, at which time Its salvage value will be zero. It has a current market value of $48,000. Variable manufacturing costs are $33,900 per year for this machine. Information on two alternative replacement machines follows. Cost Alternative $ 124,000 23,000 Variable manufacturing costs per year 111,000 19,800 Calculate the total change in net...
A company is considering two investment alternatives. Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $5479 per year and the savings will increase by $2050 each year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $11352 per year. Find the present worth of...
A company is considering two investment alternatives Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $9445 per year. Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $12390 per year Find the Annual worth of each alternative if the company as a MARR of...
The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B 0 $46,000 $56,000 1 11,200 10,400 2 11,200 10,400 3 11,200+ replace 10,400 4 10,400 + replace These costs are expressed in real terms. Suppose that technological change is expected to reduce costs by 10% per year. There will be new machines in year 1 that cost 10% less...
CALCULATE FOR B PROBLEM The following costs are associated with three tomato-peeling machines being considered for use in a food canning plan Machine A S52,000 15,000 Machine B $67,000 12,000 Machine C $63,000 9,000 First cost Annual Maintenance & Operating costs Annual increase starting in year2 Annual benefit Salvage value Useful life, in years 38,000 13,000 4 37,000 22,000 12 250 31,000 19,000 If the canning company uses a MARR of 12%, which is the best alternative? Show your analysis...
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...