1. The first cost of a component is $ 50,000. It will have an annual operating cost of $20,000 and $5,000 salvage value after its 5-year life. At an interest rate of 10% per year, what is the capitalized cost?
Q: The CFO for Woodsome Appliance Company Plant #A14 in Mexico City has five independent projects she…
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- A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects shown, all of which can be considered to be viable for only 10 years. If the company’s MARR is 15% per year, determine which should be selected on the basis of a present worth analysis. Financial values are in $1000 units. A B C D First cost, $ −1,200 −2,000 −5,000 −7,000 Annual net income, $/year 200 400 1100 1300 Salvage value, $ 5 6 8 7A newly proposed project has a first cost of $ 211962 and estimated annual income of $46410 per year for 10 years. Determine the PW value if the MARR is 10.4% per year.The CFO for Woodsome Appliance Company Plant #A14 in Mexico City has five independent projects she can fund this year to improve surface durability on stainless steel products. The project investments and 18%-per-year PW values are as shown. What projects should be accepted if the investment limit is (a) no limit, and (b) $55,000? Initial PW at 18% Project Investment, $ per Year, $ 1 −15,000 −400 2 −25,000 8500 3 −20,000 500 4 −40,000 −5600 5 −52,000 9800
- Compare two alternatives for a physical security system surrounding a power distribution substation using annual worth analysis and a MARR of 10% per year. System Condi Torro First cost, $ −25,000 −130,000 M&O cost, $ per year −9,000 −2,500 Salvage value, $ 3,000 100,000 Life, years 3 ∞Please no written by hand and no image A subdivision developer must construct a sewage treatment plant and deposit sufficient money in a perpetual trust fund to pay the $5000 per year operating cost and to replace the treatment plant every 40 years. The plant and future replacement plants will cost $150,000 each. If the trust fund earns 8% interest, what is the developer’s capitalized cost? Only use excel to answer this question please show excel functions used.Two machines can be used to produce a part from titanium. The costs and other cash flows associated with each alternative are estimated. The salvage values are constant regardless of when the machines are replaced. Determine which alternative(s) should be selected for further analysis if alternatives must have a payback of 5 years or less. Perform the analysis with (a) i = 0%, and (b) i = 10% per year. Machine Semiautomatic Automatic First cost, $ −40,000 −90,000 Net annual income, $ per year 10,000 15,000 Maximum life, years 10 10 Salvage value, $ 0 0
- The capital fund for new investment at Systems Corporation is limited to $75,000 for next year. You have been asked to recommend one or more of three projects as economically acceptable for investment at the corporate MARR of 15% per year. Perform the analysis in two ways: (a) by hand, and (b) using NPV functions and a spreadsheet. Initial Annual NCF, Life, Salvage Project Investment, $ $/Year Years Value, $ A −25,000 6,000 4 4,000 B −30,000 9,000 4 −1,000 C −50,000 15,000 4 20,000An investment of P270,000 can be made in a project that will produce a uniform annual revenue of P185,400 for 5 years and then have a salvage value of 10% of the investment. Out-of-pocket cost for operation andmaintenance will be P81,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 25% before income taxes. (a) Future Worth Method(b) Present Worth Method What is the future worth of net cash flowsAli is a Planning engineer considered the following three mutually exclusive investment projects (A, B, and C) at PTUK. He summarized the relevant data provided for these projects as; for project A, the initial investment is -200 , annual return is 22 and the salvage value is 200. For project B, the initial investment is -4000, salvage value is 2600 and the annual return is 620. For project C, the initial investment is -5450, annual retum is 740 and salvage value is 4300. The useful life for these projects is similar which is 5 years, and MARR=10% . Which alternatives are feasible based on their ROR.
- USE PRESENT WORTH. Show complete solution and cash flow diagram There is a continuing requirement for stand by electrical power at a public utilityservice facility. Alternative A involves an initial cost of $72,000, a 3-year useful life.and an annual cost of $2,200 the first year and increasing $300 per year thereafterand a net salvage value of $8,400 at the end of the useful life. Alternative B has aninitial cost of $90,000. a six-year useful life, and annual cost of 2,100 and a netsalvage value of $13,000. The current interest rate is 10% annually. Whatalternative are you going to recommend if you use the repeatability (studyperiod is 6 years) and co terminated (study period is 3 years, epsilon = 10%) assumptions?A one-mile section of a roadway in Florida has been washed out by heavy rainfall. The county is considering two options for rebuilding the road. Pertinent data are presented below. If the county's MARR for this type of project is 9% per year, which replacement option should be chosen? Assume repeatability. 1) The equivalent uniform annual cost for the asphalt option is $ ? 2) The equivalent uniform annual cost for the concrete option is $ ? 3) Select the ? option.1. Two methods can be used for producing expansion anchors. Method A costs $70,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $135,000, an operating cost of $8,000 per year, and a $40,000 salvage value after its 3-year life. At the MARR of 12% per year, which method should be used on the basis of a present worth analysis?