8. Two 30-hp pumps are being considered for use in a manufacturing plant. Pump A has an efficiency of 85%, costs P220 000.00, has a life of 15 years, and a salvage value of P40 000.00. Pump B has an efficiency of 78%, costs P130 000.00, has a life of 15 years, with no salvage value. Power charge is P9/kW-hr and the pump will be operated eight hours a day, 270 days per year. Annual insurance and tax charges are 5%. Determine the pump to be purchased, using PW analysis and a 14% rate of return

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A: Equivalent Annual cost (EAC) is the total cost incurred by the company annually for operating and…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $265,000, has a…

A: The cost related to owning, operating, and maintaining an asset over its life is referred to as EAC.…

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A: The annual cost is equivalent cost of operating the motor which is equivalent to initial cost…

Q: what is the present worth of this investment?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: The initial investment cost of machine A is $ 9,000 and the useful life of the machine is 6 years…

A: Answer Calculation of Net Present cost equivalent per year

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A: Capital Budgeting are the long term decisions an entity needs to take for the maximum benefits from…

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Q: 1. A cooling water pumping station at a manufacturing plant in Iligan City costs P30,000,000 to…

A:

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $216,000, has a…

A: Given: Techron 1  Initial cost = $216000 Life = 3 years Pretax operating cost = $55000 Depreciation…

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A: The annual cost that is equivalent to all costs that incurred during the life of equipment is…

Q: An electric motor is rated at 10 horsepower (HP) and costs $800. Its full-load efficiency is…

A: Present worth is the worth of the amount in current time which is expected to be received or spend…

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A: ERR is rate at which PV of cash outflows is equal to FV of cash inflows. In other words, rate at…

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A: Salvage value is the expected book value of an asset following a depreciation, depending upon how…

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A: Sunk cost is the cost already incurred and is not relevant, whereas relevant cost are relevant for…

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A: Given, First Cost= $1,050,000 Salvage Value= $225,000 Maintenance & Operating Cost= $235,000…

Q: You are considering a manufacturing equipment that has a cost of $100,000. The equipment is expected…

A: Equivalent Savings per hour refers to amount of saving adjusted with time value factor is saved by…

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A: a.Compute the net present value of investment “a”.

Q: An industrial plant has an engine costing of P 7,200 which is 5 years old. Its working life if 15…

A: Solution Depreciation is a non cash business expenses that is allocated and calculated over the…

Q: Lakeside Inc. is considering replacing old production equipment with state-of-the-art technology…

A: Annual cost savings = Monthly savings x 12 months = $10,000 x 12 = $120,000

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A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

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A: In PW method we determine the present value of all cost including salvage and annual benefits. When…

Q: Four years ago, an ore-crushing unit was installed at a mine which cost P81,000. Annual operating…

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Q: 3. A company is considering replacing an old piece of machinery, which cost $650,000 and has…

A: DIFFERENTIAL ANALYSIS  PARTICULARS  ( ALTERNATIVE 1 ) CONTINUE WITH OLD MACHINE ( ALTERNATIVE…

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A: Information Provided: Graybar motor costs = $7000 Electrical efficiency = 90% Blueball motor costs =…

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Q: A machine costing $30,000 to buy and $2,500 per year to operate. It will save $8,390 in annual labor…

A: IRR is the rate of return a project generates through its lifetime expressed in annual terms. It is…

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A: The present value method is an important technique to determine the probability of the projects…

Q: The estimated cost of a completely installed and ready-to-operate 40-kilowatt generator is $30,000.…

A: The calculation is:

Q: 1. A company wants to buy a drilling machine that will go down to 300 meters. When this drilling…

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A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

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Q: The estimated cost of a completely installed andready-to-operate 40-kilowatt generator is $32,000.…

A: The capital budgeting is a technique that helps to analyze the profitability of the project.

Q: The Times newspaper is trying to decide between two machines. Machine A costs $80,000 and is…

A: Cost = $80,000 Useful life = 12 years salvage value = 14,000 Depreciation = Cost - salvage…

Q: 8-4 A paper mill is considering two types of pollution control equipment. A Neutralization…

A: Present value is the value of an investment or amount at the future date for the interest rate…

Q: 7. Hemisphere Electric may purchase equipment to manufacture a new line of wireless devices for home…

A: The present worth analysis is an important technique of capital budgeting in which the company…

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A: Cost of copper refinery is $150,000,000. The useful life of the equipment is 10 years The current…

Q: You are evaluating two different silicon wafer milling machines. The Techron I costs $249,000, has a…

A: The question is based on the concept of Financial Management.

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A:

Q: An industrial organization studying the relative desirability of two diesel engines proposed for…

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