A ski resort wishes to evaluate two alternative machines for ski and board tuning. Select the best alternative using the AW method at 9% per year. ections 5.1 & 5.2) Machine R Machine S -370,500 First cost, $ Annual operating cost, $ per year -250,000 -40,000 -50,000
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- A company that manufactures amplified pressure transducers wishes to decide between the machines shown - variable speed (VS) and dual speed (DS). Determine the range of Ai*, incremental ROR. (i.e. 5%-6%). First cost, $ AOC, $ per year Overhaul in year 3, $ Overhaul in year 4, $ Salvage value, $ Life, years VS -260,000 -230,000 -40,000 55,000 6 O a Ai* vs-ps = 19% - 20% Ob.Ai* vs os = 4%-5% OcAi* vs os = 10% -11% Ⓒd. Ai vs Ds = 17%-18% DS -215,000 -235,000 -24,000 14,000 6Compare the machines below using present worth analysis at i10% per year and find which one should be selected Machine Y First Cost Operating Cost Savage Lfe cycle Machine X 20.000 3.000 3.000 3years Firat Cost 30.000 .000 Annuel Operating Cost Salvage Life cycle 3.000 6 yoarsA company that manufactures amplified pressure transducers wishes to decide between the machines shown - variable speed (VS) and dual speed (DS). Determine the range of Ai*, incremental ROR. (i.e. 5%-6%). First cost, $ AOC, $ per year Overhaul in year 3, $ Overhaul in year 4, $ Salvage value, $ Life, years Vs -260,000 -230,000 -40,000 55,000 6 a. Ai*vs-ds 19% - 20% O b. Ai* vs.Ds = 10%-11% OC.Ai* *VS-Ds = 4%-5% O d. Ai* vs-Ds = 17% -18% VS-DS DS -215,000 -235,000 -24,000 14,000 6
- Emerson Electric manufactures compressors for air conditioners. It needs replacement equipment to improve one of its manufacturing lines. Select between two options using the MARR of 14% per year and a future worth analysis for the expected use period. What are the future values of each option? Option First cost, S A B -64,000-76,000 -16,000-22,000 AOC, $ per year Expected salvage value 8,000 11,000 Expected use, years 3 6A solid-waste recycling plant is considering two types of storage bins using an MARR of 10% per year. (a) Use ROR evaluation to determine which should be selected. (b) Confirm the selection using the regular AW method at MARR = 10% per year. Storage Bin P Q First cost, $ −18,000 −35,000 AOC, $ per year −4000 −3600 Salvage value, $ 1000 2700 Life, years 3 6A manufacturing company is trying to decide between the two machines shown below. Determine which machine should be selected on the basis of rate of return. Assume the MARR is 20% per year. Machine A Machine B Initial Cost, $ -18,000 -35,000 Annual operating cost, $/year -4,000 -3,600 Salvage value, $ 1,000 2,700 Life, years 3 6
- The AW method is to be used to select the better alternative of the two machines listed below, at 10% per year. Answer the below questions: Machine R Machine S First cost, $ 250,000 497,732 Annual operating cost, $ per year 40,000 50,000 Salvage value, $ Life, years 20,000 30,000 3. 5. The AW of Machine S=In the choice of mechanical equipment you are required to submit your recommendation as to which of the two steam shovels for earth excavation is better to buy. The basis is 20 year service & interest at 7%. Taxes & insurance are the same in each case: 5% & 1% respectively. Use Annual Cost & CC. 50-ton shovel 70 ton shovel First Cost P30k P38k 20 years 20 years P2k Life Salvage value Annual Operation Annual Upkeep Annual Output P3k P15k P17k P1.5k P2k 150k yards 200k yardsDexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 9% per year, which alternative should be selected? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-100,000 $-30,000 $2,000 3 years LS $-300,000 $-5,000 $15,000 6 years
- A warehouse manager is evaluating 2 different robotic systems to be installed in his warehouse. Using the present worth analysis, determine which is the economically better system if MARR is 12% per year compounded monthly. Justify your answer. System A System B - 40,000 -60,000 - 5,000 Initial cost, RM Maintenance cost, RM per month Semi-annual maintenance cost, RM per 6-month Salvage value after 5 years, RM - 13,000 8,000 10,000Advanced Technologies, Inc. is evaluating two alternatives to produce its new plastic filament with tribological (low friction)properties for creating custom bearing for 3-D printers. The estimates associateu with its alternatives are shown below. Use LCM way and a MARR of 20% per year. Method DDM LS First Cost $ -165,000 -375,000 M&O cost, $/year -50,000 -25,000 30,000 Salvage value $ Life, years 2 26°C Mostly clear P Type here to searchAn office building is needing to replace its refrigeration and cooling units. Two mutually exclusive alternatives for the office's building refrigeration and air conditioning needs are being investigated is 15% per year and the study period is 18 years, which chilling system should be recommended? Their relevant costs and lives are summarized as follows: Absorption Chilling (AC) Compression Chilling (CC) Capital investment $60,000 $80,000 Annual operating expenses 40,000 32,000 Salvage (market) value 10,000 0 Useful life 6 years 9 years If the hurdle rate (MARR) is 15% per year and the study period is 18 years, which chilling system should be recommended?