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 7

Q: Feng Seawater Desalination Systems has established a capital investment limit of $800,000 for next…

A: The following table shows the project cash flow.

Q: Two methods can be used for producing expansion anchors. Method A costs $80,000 initially and will…

A: Present worth = -P+(AR-Am)( P/A,i%,n)+F(P/F,i%,n)where P is the initial cost, AR is the annual…

Q: A member of congress wants to know the capitalized cost of maintaining a proposal national park. The…

A: * SOLUTION :-  * Given that,                 A= $ 2,250,000 and               i = 0.06. * P =…

Q: A window frame manufacturer is searching for ways to improve revenue from its triple-insulated…

A: Investment: The action in which money is invested in making a profit.

Q: You purchased a building five years ago for $200,000. Its annual maintenance expense has been…

A: Given,  Purchased Building 5 years ago at : $200,000 Maintenance Cost : $15,000/year At the end of 3…

Q: An aggressive stockbroker claims an ability to consistently earn 12% per year on an investor’s…

A: a. The initial investment (I) is $10,000. Time period (n) is 19 years. Additional investment (I1) of…

Q: The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2.1 million.…

A:

Q: The PW of five independent projects have been calculated at an MARR of 12% per year. Select the best…

A: Given MARR = 12% Total number of projects = 5

Q: As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation…

A: Initial Cost = 194,000 Annual M&O = 12,000 Number of people use the services = 16,000 Average…

Q: Find A. conventional B/C ratio B. modified B/C ratio C. Pl value A government-funded wind-based…

A: Benefit Rate (BCR) is an indicator of the relationship between the costs associated with the…

Q: A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as…

A: Given the information of two manufacturers, calculate the Present Worth.

Q: A building is adding 27,000 square feet to their existing structure. The costs include a…

A: A building is adding 27,000 square feet to its existing structure. The costs include a construction…

Q: UPS Freight plans to spend $100 million on new long-haul tractor-trailers. Some of these vehicles…

A: Given: Cost=$100 million MARR=10%

Q: Determine the IROR and profitability index at 12% per year for an industrial smart-grid system that…

A: The value is established on an assessment of the asset's significance, or the value can be…

Q: A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is…

A:

Q: For some years, Mel has contracted with several major pizza retailers for home delivery services. He…

A: Given,  Two Delivery Services : Current Van and New VanMARR : 12% Current Van : Purchased 10 years…

Q: A government-funded wind-based electric power generation company in the southern part of the country…

A: First, find the present worth of benefits: In year zero benefit = $45000 In year 5 benefit = $30000…

Q: The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2.4 million.…

A: Given: Cost of upgrading=$2.4 million Other maintenance every 5 years=$460000 Interest rate=11%

Q: $100,000 is invested in equipment having a negligible salvage value regardless of when the equipment…

A: Given information: Equipment cost = $100,000 Operating and maintenance cost (O&M cost) =…

Q: restaurant owner is trying to decide between two different garbage disposals. A regular steel (RS)…

A:

Q: The AW values of three cost alternatives are $−23,000 for alternative A, $−21,600 for B, and…

A:

Q: A corporation uses a type of motor truck which costs P 250,000, with life of 2 years and final…

A: The cost that is being incurred annually for the ownership and operation of an asset over its life…

Q: The National Potato Cooperative purchased a deskinning machine last year for $150,000. Revenue for…

A: Salvage value refers to that amount of fixed asset which remains un-allocated in the form of…

Q: DVH Technologies purchases several parts for the instruments it makes via a fixed-price contract of…

A: Fixed price contract is an agreement of a pre-determined worth of payment that's not subject to…

Q: For some years, Mel has contracted with several major pizza retailers for home delivery services. He…

A: Given,  New Van :Cost : 137,500 with economic life of 6 yearsTrade in value : 45,000AOC of…

Q: Process A has a fixed cost of $190,000 per year and a variable cost of $58 per unit. For Process…

A: According to the given information, fixed cost of Process A is $190,000, variable cost of Process A…

Q: Standby power for pumps at water distribution booster stations can be provided by either gasolineor…

A: Correct option is (d) Given, first cost is -150000 M & O, per year is -41000 Salvage value is…

Q: Transformers for underground works were planned to be provided. Type A has an initial cost of…

A:

Q: Jupiter Inc. has decided to acquire a new weather satellite. After considering several options it…

A: Incremental cost will be ( PTO - XYZ ) = 307,270 - 136,873…

Q: Determine the IROR and profitability index at 12% per year for an industrial smart-grid system that…

A: The first cost (FC) is $400,000. Annual operating cost (AC) is $75,000. Annual savings (AS) is…

Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…

A: Using the FV calculation, investors may make educated guesses about how much money they can expect…

Q: . Saudi Post can sell envelopes for $0.2 per envelope. These envelopes are made using that cost…

A: We have, Machine cost = $100,000 i = 12% n = 10 year

Q: An estimated 6 billion gallons of clean drinking water disappear each day across the United States…

A: a. Table 1 shows the project cash flow:

Q: For the cash flows shown, use an annual worth comparison and a MARR of 10% per year to determine the…

A: AW method:When comparing alternatives, the AW method is commonly used.AW means that all incomes and…

Q: Leroy purchased an Al-based robotics system with the first cost of $345,000, an AOC of $148,000 per…

A: Annual value (AW) Analysis. Annual value (AW) Analysis is outlined because the equivalent uniform…

Q: The manager of a canned-food processing plant has two labeling machine options. On the basis of a…

A: Table 1 shows the cash flow.

Q: Fairmont Industries primarily relies on 100% equity financing to fund projects. A good opportunity…

A: The weighted average cost of capital addresses the typical expense to draw in financial backers,…

Q: A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage…

A:

Q: Two mutually exclusive alternatives have the estimates shown below. Use annual worth analysis to…

A: The comparable uniform annual worth of all anticipated receipts (income) and disbursements (costs)…

Q: Pace Automation Corporation in Cookeville, Tennessee must choose the better economical alternative…

A: Given : Number of units required per year=1000,Life of automated equipment=10 years Alternative A -…

Q: Leonard, a company that manufactures explosion-proof motors, is considering two alternatives for…

A: Present worth is the term that is used to explain the worth of the money for today as compared to…

Q: ABC Beverage, LLC, purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The…

A: Brush Alternative EAUw = Initial Cost (A/P , i , n ) + AOC ( A/G , i , n ) + Salvage Value ( A/F , i…

Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…

A: A amount of money today is worth more than a sum of money in the future, according to the concept of…

Q: A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life s six…

A: The devotion of an asset to achieve a gain in value through time is referred to as investment. The…

Q: Bawal gumamit ng excel( Don't use Excel) A small company has P20,000 in surplus capital that it…

A: Given information

Q: You purchased a building five years ago for $200,000. Its annual maintenance expense has been…

A: MARR=8%Building cost= $200000maintenance cost= $15000 for 5 yearsRoof repair= $55000therefore,…

Q: For the two alternatives, demonstrate that the sum of the incremental cash flow series (Z − X) over…

A: Table 1 shows the cash flow: Incremental cash flow between alternatives Z and X can be calculated…

Q: A theft-avoidance locking system has a first cost of $23,500, an AOC of $16,000, and no salvage…

A: Annual worth (AW)can be calculated by using the following formula.

Q: THK Industry has $10,000 to spend on as many as 3 products to enhance her business. Use the PW…

A: THK industries has $10000 to spent on as many as 3 products to enhance her business. Present worth…