A test facility setup cost Rs 10,00,000 at the time of installation and its scrap value is Rs 50,000 at the end of the 10 years of useful life. Calculate the book value at the end of 5 years by straight line method.
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- 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%NOTE: SHOW YOUR SOLUTIONS PROPERLY. The book value of a machine after 4 years is P 50,000. Determine its fixed cost if its salvage value after 6 years service life is P 5,000. Use straight line method. Ans. P 140,000Engineering 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.
- Determine the Average Cost if the total cost of the production is $150 and the total numbers of production unit is $100.the first cost of an electric rebar bender is 341,000 pesos and a salvage value of 45000 pesos at the end of its life for 4 years. money is worth 6.3%annually. if there is no salvage value and the annual maintenance cost is 15000 pesos, find the annual cost of perpetual service.Q3: 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 instantly
- 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?46 A new engine was installed by a textile plant at cost of P and projected to have a useful life of 10 years. At the end of its useful life, it is estimated to have a salvage value of P32,000. The capitalized cost is P350,000. Determine the first cost P if interest is 18% compounded annually.A light manufacturing firm has set up a project for develop- ing a new machine for one of its production lines. The most likely estimated cost of the project itself is $1,000,000, but the most optimistic estimate is $900,000 while the pessimists predict a project cost of $1,200,000. The real problem is that even if the project costs are within those limits, if the project itself plus its implementation costs exceed $1,425,000, the project will not meet the firm’s NPV hurdle. There are four cost categories involved in adding the prospective new machine to the production line: (1) engineering labor cost, (2) nonengineering labor cost, (3) assorted material cost, and (4) production line downtime cost. The engineering labor requirement has been estimated to be 600 hours, plus or minus 15 percent at a cost of $80 per hour. The nonengineering labor requirement is esti- mated to be 1,500 hours, but could be as low as 1,200 hours or as high as 2,200 hours at a cost of $35 per hour. Assorted…
- The potassium industry is perfectly competitive. Firms act as price takers and each firm in the industryoperates only one plant. The following table shows data on incumbent plants in the potassium industry:AverageUnitVariableCost AnnualFixedCosts(millionsper year) Requiredinvestmentto constructnew plant(millions) Salvagevalue ofplantCapacity ofa plant(million tonsper year) Numberofplants $4 per ton $6 $70 $0 1 40 Also: Average variable cost is constant for any output up to full capacity operation. Firms have a cost of capital of 10 percent. All new plants that might be built would be identical to existing plants Market demand is given by the equation, Q = 160 – 5P, where the price P is measured in dollarsper ton and quantity Q is measured in millions of tons. What are the entry price and long-run equilibrium in this industry?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 400A new boiler was installed by a textile plant at a cost of ₱3,000,000 and projected to have a useful life of 15years. At the end of its useful life, it is estimated to have a salvage value of ₱300,000. Determine its capitalized cost if interest is 18% compounded annually.