I need the answer in 10 minutes please QUESTION 1Using the PW analysis on the basis of their capitalized cost to compare the Mutually Exclusive (ME) alternatives below at a rate of 10% per year. What is the capitalized cost of machineA?Machine AMachine B1st Cost$12,0008000Operating cost/Yr35002500Salvage Value35001000Lifeinfinite5O a. $-47,000O b. $-42,580O. $+33,000O d. $-44,466

For Machine A: Initial cost (C) = 12,000 Operating Cost (OC) = 3500 Salvage (S) = 3500 Useful life…

Answered: Using the PW analysis on the basis of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Evaluate the two machines below, using ROR analysis. Which machine should be selected, if MARR is 10%? Remember, the ROR equation should be set up to ensure equal service. Mach B -15,000 -25,000 -400 6,000 Mach A First cost ($) AOC ($) Salvage value (4) Life (yrs) -1,600 3,000 6
Question 3 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: A- PW for machine A= 23,979 8,679 4,000 Machine B 30000 6,000 5,000 Machine C 10000 4,000 1,000
Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 16% per year. Platform First cost, $ million Y Z -300 -450 -510 M&O, $ million per year -320 -290 -230 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20 Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- 2298.4 worth of platform Z is $- 1944.14 million, the present worth of platform Y is $- 2262.15 million, and the present million. The platform selected based on the present worth is platform Z
For th below two machines and based on CC analysis which machine we should select? MARR=10% Machine A Machine B First cost, $ Annual cost, $/year Salvage value, $ Life, years 3 Answer the below question: B- the CC for machine B= 20,538 11,820 7,655 infinite 113,798 8,894
QUESTION 3 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10% Machine A Machine B Machine C First cost, $ Annual cost, $/year Salvage value, $ Life, years 18,756 30000 10000 9,487 6,000 4,000 4,000 5,000 1,000 Answer the below questions: A- PW for machine A=
An industrial plant has hired a contractor to develop a solar farm nearby for the industrial plant's electricity consumption. During the 3-year construction period, the contractor will need to run a generator to power the construction. Cost analysis from previous projects indicates: Generator Brand Installed Cost Cost per Hour A $22M $500 B $23M $400 C $25M $250 D $30M $150 At the end of 3 years, the generator will have a salvage value equal to the cost of removing them. The generator will operate 6,000 hours per year. The lowest interest rate at which the contractor is willing to invest money is 7%. (The minimum required interest rate for invested money is called the minimum attractive rate of return, or MARR.) Select the alternative with the least present worth of cost. O Choice "C" with $29,872,900 O Choice "B" with $29,298,320 O Choice C with $28,936,450 O Choice "A" with $29,872,900
QUESTION 5 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR-10%. First cost, $ Annual cost, $/year Salvage value, $ Life, years Answer the below questions: C-PW for machine C = QUESTION 4 First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: B- PW for machine B= Path: p 15000 8,055 4,000 Machine A First cost, $ Annual cost, $/year Salvage value, $ Life, years For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10% 15000 9,499 4,000 Machine B Machine A Answer the below questions: A-PW for machine A= 30000 6,000 5,000 22,701 8,590 4,000 Machine B 28,459 6,000 5,000 QUESTION 5 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10%. Machine C Machine B 13,398 4,000 1,000 QUESTION 3 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR-10% 30000 Machine C 6,000 5,000 10000…
New microelectronics testing equipment was purchased 2years ago by Mytesmall Industries at a cost of $600,000. Atthat time, it was expected to be used for 5 years and thentraded or sold for its salvage value of $75,000. Expandedbusiness in newly developed international markets is forcingthe decision to trade now for a new unit at a cost of$800,000. The current equipment could be retained, ifnecessary, for another 2 years, at which time it would have a$5000 estimated market value. The current unit is appraisedat $350,000 on the international market, and if it is used foranother 2 years, it will have M&O costs (exclusive ofoperator costs) of $125,000 per year. Determine the valuesof P, n, S, and AOC for this defender if a replacementanalysis were performed today. P = market value =$350,000AOC = $125,000 per yearn = 2 yearsS = $5,000
Q15. For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ A B -13,000 -25,000 AOC, $ per Year -1,300-400 Life, Years Salvage Value, $ 5,000 6,000 3 6 a) The incremental cash flow between machines B and A in year 0 is $ . b) The incremental cash flow between machines B and A in year 3 is $. c) The incremental cash flow between machines B and A in year 6 is $ .
Problem 2: For the cash flows shown, determine the incremental cash flow between machines B and A. Machine A First Cost, $ -13,000 -25,000 AOC, $ per Year Salvage Value, $ Life, Years -2,000 -400 3,000 6,000 3
period of 5 years. Salvage value is estimated at 10% of its first cost. The interest rate is 12% per at $ 150,000. Labor and other operating costs are estimated to be $35,000 per year over the study high-use component can be purchased (bought) for S 25 per unit with a quick delivery. QWA Electronics is considering between two alternatives for their electronic components' needs. A Mestion #6 (20 points) cost of $ 5 per unit. For this option of making the product, QWA needs to purchase equipment today Alternatively, QWA can make the components in-house and have it already available at a variable year. Determine the breakeven quantity based on annual worth of cash flows. 0. Indicate whether to buy or make the components at the expected usage level of 5000 units per year. Explain your answer. a.
QUESTION 4 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions : B- AW for machine B= 15000 8,701 4,000 Machine B 26,460 6,000 5,000 Machine C 10000 4,000 1,000

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