Advanced 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 associated with its alternatives are shown below. Use LCM way and a MARR of 20% per year.
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A: The answer is given below
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- A newly proposed project has a first cost of $ 211962 and estimated annual income of $46410 per year for 10 years. Determine the PW value if the MARR is 10.4% per year.WHICH IS MORE ECONOMICAL? USE METHOD OF COMPARISON OF ALTERNATIVES! In a cold storage plant, it is desired to determine whether to use insulation two inches thick or three inches thick in insulating the walls of the cold storage ware house. Heat absorb through the walls without insulation would cost P96.00 per year per squaremeter. A two-inch insulation will cost P30.40 per square meter and will cut out 89% of the loss. A three-inch insulation will cut out 92% of the loss and will cost P65.00 per square meter. Using a life 15 years for the insulation with no salvage value and a minimum attractive return of 8%, what thickness of insulation should be used?Consider two air-conditioning systems with the estimates below. (a) Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4%, 6%, and 8% per year. (b) Develop the spreadsheet functions that will display the six AW values. System 1 2 First cost, $ −10,000 −17,000 AOC, $ per year −600 −150 Salvage value, $ −100 −300 New compressor and motor cost at midlife, $ −1,750 −3,000 Life, years 8 12
- 1. Two methods can be used for producing expansion anchors. Method A costs $70,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $135,000, an operating cost of $8,000 per year, and a $40,000 salvage value after its 3-year life. At the MARR of 12% per year, which method should be used on the basis of a present worth analysis?NEED HELP ASAP!! THANK YOU! Two processes can be used for producing a new engine. Process A will have a first cost of P750,000, an operating cost of P60,000 per year, and a salvage value of P80,000 after its 2-year life. Process B will have a first cost of P1,350,000, an operating cost of P25,000 per year, and a P120,000 salvage value after its 4-year life. Process B will also require updating at the end of year 2 at a cost of P90,000. On the basis of a future worth analysis at an interest rate of 12% per year, write the ANSWER for ALTERNATIVE A: Blank 1 ANSWER for ALTERNATIVE B: Blank 2Seawater contains 2.1 pounds of magnesium per ton. By using the processingmethod A, 85% of the metal can be recovered at a cost of 3.25 per ton of water pumped andprocessed. If process B is used, 70% of the available metal is recovered, at a cost of only 2.60per ton of water pumped and processed. The two processes are substantially equal as toinvestment costs and time requirements. (a) If the extracted metal can be sold for 2.40 perpound, which processing method should be used? (b) At what selling price for the metal wouldbe two processes be equally economical?Answer with complete solution brief explanation. Thank you.
- You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative X Y First cost, $ −45,000 −58,000 Maintenance cost, $/year −8,000 −4,000 Salvage value, $ 2,000 12,000 Life, years 5 5The first cost of a fairly large flood control dam is expected to be $5 million. The maintenance cost will be $60,000 per year, and a $100,000 outlay will be required every 5 years. At interest of 10%, find the EUAC of the dam project.An upgraded version of a CNC machine has a first cost of $200,000, an annual operating cost of $60,000, and a salvage value of $50,000 after its 8-year life. At an interest rate of 10% per year, the capitalized cost is closest to: (a) $−93,116 (b) $−100,060 (c) $−931,160 (d) $−1,000,600
- A large textile company is trying to decide which sludge dewatering process it should use ahead of its sludge drying operation. The costs associated with centrifuge and belt press systems are shown. Compare them on the basis of their annual worths using an interest rate of 10% per year. System Centrifuge Belt Press First cost, $ −235,000 −150,000 AOC, $/year −48,000 −41,000 Overhaul in year 2, $ -- −26,000 Salvage value, $ 40,000 10,000 Life, years 6 4 The annual worth of the centrifuge system is $− , and the annual worth of the belt press system is $− . The system selected on the basis of the annual worth analysis is the (Click to select) belt press centrifuge system.A tractor for over-the-road hauling is to be purchased by AgriGrow for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Transportation cost savings are expected to be $170,000 per year; however, the cost of drivers is expected to be $70,000 per year and operating expenses are expected to be $63,000 per year, including fuel, maintenance, insurance and the like. The company’s income-tax rate is 25% and MARR is 10% on after-tax cash flows. Suppose that, to AgriGrow’s surprise, they actually dispose of the tractor at the end of the 4th tax year for $6,000. Develop tables using a spreadsheet to determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR after only 4 years. Use MACRS-GDS and state the appropriate property class. Only calculate PW and IRRWhich among the materials will result in the most economical product and at the same time give the best results? Stockholders will be visiting a resins plant. It was decided by the management that they must paint the plant. Boysen paint cost P700 per gallon and covers 350 ft² per gallon. The manufacturer claims that it will last 4 years and can be applied at a rate of 100 ft² per hour.Dutchmaster paint costs P1000 per gallon and covers 500 ft² per gallon. It will last for 5 years and can be applied at a rate of 125 ft² per hour. If the painter is paid P40 per hour, which paint should be used?