1. A university lab is a research contractor to NASA for in-space fuel cell systems that are hydrogen- and methanol-base During lab research, three equal-service machines need to be evaluated economically. Below is the table for the giv values for each. The MARR is 10% per year. Perform the following analysis with their respective the Cash Flow Diagran a. Present Worth Method b. Future Worth Method C. Annual Worth Method d. Payback Period Method e. Make a general conclusion based on the 4 methods used. Electric-Powered First cost, $ Annual operating cost (AOC), S/year Salvage value S. $ -4500 -900 200 Gas-Powered Solar-Powered -3500 -700 -6000 -50 350 100

1. A university lab is a research contractor to NASA for in-space fuel cell systems that are hydrogen- and methanol-base During lab research, three equal-service machines need to be evaluated economically. Below is the table for the giv values for each. The MARR is 10% per year. Perform the following analysis with their respective the Cash Flow Diagran a. Present Worth Method b. Future Worth Method C. Annual Worth Method d. Payback Period Method e. Make a general conclusion based on the 4 methods used. Electric-Powered First cost, $ Annual operating cost (AOC), S/year Salvage value S. $ -4500 -900 200 Gas-Powered Solar-Powered -3500 -700 -6000 -50 350 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. The HVAC engineer for a company constructing one of the world's tallest buildings (Shanghai Financial Center in the People's Republic of China) has requested that $500,000 be spent now during construction on software and hardware to improve the efficiency of the environmental control systems. This is expected to generate revenue of $95,000 per year, and Maintenance and energy cost is assumed to be $85,000 annually. It also expected that there is a $100,000 salvage value at the end of 10 years. If MARR = 5%, a) What is the first year Rate of Return of this proposal? b) What is the excess, using annual worth method, of this proposal? c) Compute the Net Future Worth of this proposal? d) What is the simple payback period for this proposal? e) What is your conclusion on the about the acceptability of this proposal?
A concrete pavement on a street would cost 10,000 and wouldlast for 5 years with negligible repairs. At the end of each 5years, 1,000 would be spent to remove the old surface before10,000 is spent again to lay a new surface. Find the capitalizedcost of the pavement at 5%.
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Valley Rendering, Inc. is considering purchasing a new flotation system for grease recovery. The company can finance a $150,000 system at 5% per year compound interest or 5.5% per year simple interest. If the total amount owed is due in a single payment at the end of 3 years, (a) which interest rate should the company select, and (b) how much is the difference in interest between the two schemes?
You are a consultant at Brinkley & co .you are responsible for evaluating projects introduced by surrounding engineering firms. the current project you are evaluating requires an initial investment of $35,000 and that returns $5000 for the next 10 years. if the MARR is 12% what is the present worth value?
a company has a choice to invest in one of two different things, A and B. A, has a $ 150 000 first cost. B, has a $ 530 000 first cost. A saves $ 50 000 per year over. B will save $ 150 000 per year. Both last about five years. If the MARR is 9 percent, which is better? Use an IRR comparisonm
Identify the following net cash flow series as conventional or nonconventional. Sign on Net Cash Flow by Year Year 0 1 2 3 4 5 (a) − − − − − + (b) − − − + + − (c) + + + + − − (d) + − + − + − (e) − − + + + +
SOLUTION WITH CASH FLOW DIAGRAM PLS
A printing press machine has a cash equivalent ofP250,000. For the first three years, it will provideP20,000 worth of profit each year. For the nextfour years, annual profit will be P35,000. For thelast two years, expenses will exceed revenues andwill have a loss of P10,000 each year. Calculatethe acceptability of this investment using Future Worthmethod if MARR is 18% per year. What is External Rate of Return if ϵ= 15%?
What is the capitalized cost of a mechanical equipment costing Php 4.5 M and having a 25-yr life. The annual maintenance of Php 30,000 and repair cost of Php 200,000. at 5-yr interval. Rate of interest is 10%.
No written by hand solution Manager of a computer company plans to spend on new hardware $1.0 million in the first year with amounts decreasing by $0.5 million each year thereafter. Income of the company is expected to be $6.0 million the first year increasing by $0.1 million each year thereafter. Determine the annual worth over the years 1 through 5 of the companies net cash flow at annual interest rate of 10%.
A man who won Php 500,000 in a lottery decided to place 50%of his winning in a trust fund for the college education ofhis son. If the money will earn 14% per year compoundedquarterly, how much will the man have at the end of 10years when his son will be starting his college education? Provide a summary for the answer Thanks!!