2 4A process control manager is considering two robots to improve materlals-handling capacity in the productlon of rigid shaft couplingsthat make dissimilar drive components. Robot X has a first cost of $88,000, an annual M&0 cost of $31.000, and $42.000 salvagevalue, and it will iriprove reverues by 596,000 per year. Robol Y has a first cost of $146,000, arn annual M&O cest af S20,000, and$47,000 salvage value, and it will increase revenues by S127,000 per year. The company's MARR is 31% per year, and it uses a 3 yearstudy perlod for economic evaluations. Calculate the incremental ROR, anc ldentify the robot the manager should select.cimsThe incremental ROR isThe manager should select robot Y7.013 %.ebookPritReterences

Given that: A process control oversees considering two robots to improve materials - taking care of…

Answered: 4 A process control manager is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will be $10,000 per quarter with a salvage value of $25,000 after its 2-year life. Process B will have a first cost of $250,000, an operating cost of $15,000 per quarter, and a $40,000 salvage value after its 4-year life. The interest rate is 8% per year compounded quarterly. Using present value analysis which process should be selected.
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There are two MEA machines that you are evaluating: Machine A has a lifetime of 6, an initial cost of €138642 and a positive salvage value of €29860. Machine B has a lifetime of 4, an initial cost of €182463, annual cost of €49000 and a positive salvage value of €14820. Your MARR is 0,17%. If you have selected Machine A, what is the maximum annual cost that this machine may have? (Do NOT use Excel.Show and explain All the steps. Need to learn for a test.)
A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $500 each year until year 10 ; savings of $20,000 per year (EOY 1–10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm’s MARR is 10% per year a) what is the present worth of the project? PW = $___ b) What is the Future Worth of this project? FW = $___ c) What is IRR ? IRR = ___ % d) Is it a sound investment opportunity? YES or NO e) Determine the Discounted Payback? ____ 5 years

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