Compare the alternative shown on the basis of their capitalized costs using an interest rate of 10% per year. First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years Alternative M -150,000 -50,000 8,000 5 Alternative N -800,000 -12,000 1,000,000
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- As an engineer, you are responsible to find the best alternative that is economically best. The cash flows shown in the table and the MARR is 11 % per year. Then please answer the following questions. Cash Flow Project 01 Project 02 Project 03 First Cost, $ -90000 220000 230000 Annual Cost, $ Per Year -60000 -21000 -17000 Overhaul Every 10 Years, $ _ _ -60000 Salvage Value, $ 8000 29000 11000 Life, Years 3 10 a) Find the Aw for Project 01. b) calculate the AW for Project 02 c) Calculate Aw for Project 03. What is your decision?A solid-waste recycling plant is considering two types of storage bins. Use ROR evaluation and an MARR of 46% per year to determine which should be selected. Storage Bin First Cost, $ AOC, $ per Year Salvage Value, $ Life, Years P -24,000 -4000 1800 3 Q -35,000 -2000 2600 6 Since A/* is (Click to select) MARR of 46%, (Click to select) should be selected.Question 5: A metallurgical engineer is considering two materials for use in a space vehicle. All estimates are made. (a) Which should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Vishes First cost, $ Maintenance cost, $ per year Salvage value, $ Life, years Material X Material Y -15,000 -35,000 -9,000 2,000 -7,000 20,000 5 5
- Use Annual Cost Analysis to determine whether Alternative A or B should be chosen. The analysis period is 5 years. Assume an interest rate of 6% per year, compounded annually Alternative A Alternative B Initial Cost Annual Benefit Salvage Value Useful Life (yrs) 1800 150 400 5 4230 340 2100 5 Alternative B should be chosen, because its annual benefit is higher than Alternative A's Alternative A should be chosen, because its initial cost is lower than Alternative B's Alternative B should be chosen, because its equivalent annual cost is $85.30 higher than Alternative A's Alternative A should be chosen, because its equivalent annual cost is $85.30 lower than Alternative B'sBuying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the present values of their purchase profit? Use MARR of 20%Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the total present worth of each alternatives? Use MARR of 20%
- Question 8 Two processes can be used for producing a polymer that reduces friction loss in engines, Which process should be selected on the basis of a the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,179,136 371,699 Annual operating cost, $ per year 80,727 32,000 80,000 130,000 Salvage value,$ Update cost at year 2, $ 15,000 Life, years 14 8. PW for Process A=For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ АОС, $/year Salvage value, $ 3,000 Life, years B -15,000 -25,000 -1,600 -400 6,000 3 4 O (a) = -10000 (b) = -1800 (c) = 1200 %3D !3! O (a) = -10000 (b) = 13200 (c) = 4200 !3! %3! O (a) = -10000 (b) = 13200 (c) =6000 %3! %3D O (a) = -10000 (b) = 13200 (c) = 13200 %3D4) Based on estimates the data for 2 types of bridges with different lives are as follows. If the minimum attractive rate of return is 10%, determine which project is more desirable using Annual Cost Method and ROR. Timber Bridge Steel Bridge First Cost P500k P850k Salvage Value 20k 100k Life in yrs 15 20 Annual maintenance 75k 50k
- 5. If the MARR is 12% per year, compare the alternatives shown below on the basis of a present-worth method Alternative 1 Alternative 2 First cost $21000 $26000 Annual operating cost $3500 $4000 $14000 $15500 Annual income Salvage value $6000 $7000 Life, years 4 5In comparing the machines on a present worth basis, the present worth of machine X, the cost of money is 10% per year, is closest to Machine X Machine Y Initial cost, $ -66,000 -46,000 Annual cost, $/year Salvage value, $ Life, years -10,000 -15,000 10,000 24,000 3. $-103,908 $-87,840 None of the answers S-65,270A company is considering two types of equipment for its manufacturing plant. Pertinent data are as follows: Equipment Type A B Initial Cost 200 000 300 000 Annual Operating Cost 32 000 24 000 Annual Labor Cost 50 000 32 000 Other Costs 14 000 21 000 Life 10 years 10 years Salvage Value If the minimum required rate of return is 15%, which equipment should be selected? Use a) annual cost analysis; b) present worth analysis; and c) equivalent uniform annual cost method. 5.