A manufacturing plant installed a new boiler at a total cost of P150,000 and is estimated to have a useful life of 10 years. It is estimated to have a scrap value at the end of the useful life P5,000. If interest is 12% compounded annually, determine its capitalized cost.
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- A machine cost P1,500,000 and will have a scrap value of P150,000 when retired at the end of 15 years. If money is worth 4.8%, find the annual investment and the capitalized cost of the machine.Engineers determined that a small amount of newly available chemical additives would increase the resistance of a building material by 20%. The factory manager arranged the purchase of the additive through a 5-year contract at a price of $7,000 annually, with an interest of 15% to be installed annually, and an inflation of 10%, starting from one year from now. The annual price is expected to increase by $50 annually starting from the sixth year and thereafter until the year 13. In addition, an initial investment of $3,000 has been made to prepare a suitable site for the contractor to deliver the additive. Find the equivalent total present value of all these cash flows.an equipment costing P 270,000 has an estimated scrap value of P 25000 at the end of its economic life of 11 years. Using Double-Declining Balance Method, what is the book value after 7 years?
- A sales engineer claims that his pump is economically justifiable. He says that for a cost of $250,000.00, it will havea market value of $30,000 at the end of 10 years. If the increased productivity attributable to this project would be$38,804 per year, is he lying? Take MARR = 10%Equipment for immersion cooling of electronic components has an installed value of P 819,000 with an estimated trade-in value of P 25,000 after 15 years. Using Declining Balance method, what is the total depreciation at the end of 7 years?Subject: Engineering Economy Topic: Selections in the Present Economy The monthly demand for ice cans being manufactured by Mr. Cruz is 3,200 pieces. With a manually operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Cruz at a price of P275,000 and which will cut by 30% the unit cutting Disregarding the cost of money, how many months will Mr. Cruz be able to recover the cost of the machine if he decides to buy now?
- Engineering Economy Compute the book value of the machine which costs ₱ 1 111 220 after 4 years if its useful life is 10 years. Use the double-declining balance method. Using this data compute using the SOYD and based on your solutions state which between double-declining and SOYD should be the best use by the engineer.The motor for a commercial condensing unit needs to be replaced. The costof a new one is $239. If the bad motor is turned in, a 33% discount is given.What is the price for the motor if the bad one is turned in?A gasoline driven pump and an electric pump are being considered for a use in a mine. If the minimum rate, of return is 12%. Annual taxes all in 3%. Gas Elect Gas Elect First cost 12000 25000 Life in Years 5 10 Salvage Value 1000 2000 Annual O.Cost 3200 1800 Annual Repairs 600 400
- How many dump trucks and excavators will you use to extract 100,000 cubic meters of coal in 1 month, under the following conditions. Truck cycle time = 15mins Truck capacity = 18 cubic meters Excavator loading time and waiting time= 3mins Bucket capacity 3 cubic meters 7hrs per day 26 days per monthQ3: A construction project whose useful life is 40 years. The cost of construction is 210 000 000. The plant earns an annual profit of $ 400,000. The annual maintenance of the project is $ 5,000 starting from the end of the first year after construction. There is a comprehensive periodic maintenance every 15 years by $ 20 000 No There is a recovery value for the project between the feasibility of the project in the event that the compound annual interest is 10%. Working answer i will dislike instantly1. A manufacturer has a contract to produce 5,000 units of a certain device. The device can be made by highly-trained workmen working individually. The device can also be made by less-skilled workmen working together if they are given a specialized equipment and proper supervision. The highly-trained workmen are paid P20.00 per hour, and each can produce one unit every 2 hours, on the average. The specialized equipment can be placed in operation at an original cost of P60,000 and it will be worthless at the time all the 5,000 units are manufactured. With this equipment four men, paid P15.00 each per hour, and a foreman, paid P25.00 per hour, can do the work. All the five men working together can finish one unit in 15 minutes. Determine the gain or loss if the specialized equipment is used.