Alternative R has a first cost of $76,000, annual M&O costs of $54,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $61,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 30%.
The M&O cost for alternative S is____ $ .
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Alternative R has a first cost of $76,000, annual M&O costs of $54,000, and a $20,000...
Alternative R has a first cost of $82,000, annual M&O costs of $52,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $70,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 24%. The M&O cost for alternative S is $_____ .
1. Alternative R has a first cost of $58,000, annual M&O costs of $26,000, and a $10,000 salvage value after 5 years. Alternative S has a first cost of $105,000 and a $50,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 12%.
Consider the following two alternatives: Alternative 1 has a first cost of $485,000, an annual maintenance and operating cost of $20,000, and a salvage value of $125,000. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $325,000, an annual maintenance and operating cost of $13,500, and no salvage value. In order to produce 3 units in an hour three workers are required a rate of...
A new machine costs $150,000, lasts 10 years, has an annual O&M cost of $50,000, and has a salvage value of $15,000. If you want to have a 20% ROR, what should be the annual revenue from this machine?
Consider the following two alternatives: Alternative 1 has a first cost of $325,000, an annual maintenance and operating cost of $20,575, and no salvage value. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $270.000, an annual maintenance and operating cost of $12.300, and a salvage value of $125,000. In order to produce 3 units in an hour, three workers are required a rate of...
Question 6 (1 point) Saved An alternative X has a life of 5 years, a first cost of $200,000, annual costs of $60,000, and a salvage value of $20,000. The AW of X will be given by: a) 200,000(A/P.1.5) + 60,000 + 20.000(A/F.1,5) b) - 200,000(A/P.1.5) - 60.000 + 20,000(A/F1,5) Oc -200,000(A/P.1,5) + 60.000 - 20.000(A/F.1.5)
A farmer has a choice of purchasing three tractors. Tractor A costs $20,000, Tractor B costs $22,000 and Tractor C costs $25,000. Each tractor has different benefits, as stated below. If the farmer's Minimum Attractive Rate of Return (MARR) is 10%, what is the NPV of the most economic plan? Do a pre-tax analysis using NPV. Tractor A: Benefits of $5,010 per year for 5 years Tractor B: Benefits of $4,000 per year for 4 years and $16,000 at end...
Question 11 For the cash flows provided hereunder, answer the questions and determine which alternative is best at an interest rate of 10% Alternative 350,000 150,000 0,000 450,000 First cost, S Maintenance costs, $ 20.000 15,000 ear Overhaul cots in vear 5 10.000 Salvage values, S 8.000 20,000 200,000 Life, years Match the closest correct answers for the below questions: Calculate the Present worth PW of A A. -86,748.66 B. -97,743.33] # Calculate the Annual worth AW of B Calculate...
Question 11 For the cash flows provided hereunder, answer the questions and determine which alternative is best at an interest rate of 10% Alternative 350,000 150,000 0,000 450,000 First cost, S Maintenance costs, $ 20.000 15,000 ear Overhaul cots in vear 5 10.000 Salvage values, S 8.000 20,000 200,000 Life, years Match the closest correct answers for the below questions: Calculate the Present worth PW of A A. -86,748.66 B. -97,743.33] # Calculate the Annual worth AW of B Calculate...
8) Determine the capitalized cost of an alternative that has a first cost of $155,000, an annual maintenance cost of $72,000, and a salvage value of $78,000 after its 10-year life. Use an interest rate of 6%. a. a) $187,142 b.c) $1,256,890 c. d) $1,452,367 d. b) 5871,000 QUESTIONS 9) The construction cost of a park is $600,000. Annual maintenance and operating costs are $120,000 per year. At an interest rate of 10% per year, the capitatlized cost of the...