An engineer calculated the AW values shown for retaining a presently owned machine additional years. A challenger has an ESL of 4 years with AW = $-60,000 per year. Assuming all future costs remain the same, when should the company replace the defender? The MARR is 12% per year. Assume used machines like the one presently owned will always be available. Years Retained AW of Defender, $ -77.000
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- A commercial 3D printer is purchased for $ 380,000. The salvage value of the printer decreases by 35% each year that it is held. The cost to operate and maintain the machine the first year it is used is $ 12,500; these costs increase by $ 4,000 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 10% is used?The cost of the equipment is P550,000 and the cost of handling and installation is P28,000. If the book value of the equipment at the end of the 3 year P275,000 and the life of the equipment is assume to be 5 years. Determine the salvage value of this equipment at the end of 5 years.8 years ago a company installed a robot that today has a market value of $ 60,000 and each year it drops $ 2000. For example, at the end of the first year the market value will be $ 58,000 and so it continues to decline. Maintenance costs for the next 4 years are estimated at $ 3000 this year and increasing 10% each year. Determine the marginal cost of extending the service for one year, for the next 4 years if the MARR is 12%. Fill in the blanks with the results. Calculate: a) The loss of market value in year 1 is $ b) Loss in interest in year 1 $ c) The Marginal Cost in year 1 is Show all the procedure for your answer thank you
- A granary purchases a conveyor used in the manufacture of grain for transporting, filling, or emptying. It is purchased and installed for $70,000 with a market value for salvage purposes that decreases at a rate of 20% per year with a minimum of value $3,000. Operation and maintenance is expected to cost $14,000 in the first year, increasing $1,000 per year thereafter. The granary uses a MARR of 15%. What is the optimum replacement interval for the conveyor?Assume the MARR is 10% per year for this analysis. A presently owned machine that was purchased 8 years ago for $450,000 is under consideration for replacement. It has an annual operating cost of $120,000 per year and a salvage value of $40,000 whenever it is replaced. The challenger has a first cost of $670,000, an expected annual operating cost of $94,000, and a salvage value of $60,000 after its 10-year economic life. The breakeven market value of the presently owned machine required to make the AW values of the two machines the same, if the presently owned machine is kept for 5 more years and then replaced with the challenger that has the same AW, is closest to: (a) $196,340 (b) $255,390 (c) $325,360 (d ) $394,770A factory purchased new heavy-duty equipment and intended to be used for 4 years. The information is given below. At MARR of 22% per year, determine the capital recovery (CR). Instruction: Enter a negative value for CR. First Cost, $ -275,000 Annual cost, $/year 5,000 Salvage value, $ 125,000 Life, years 4
- Equipment that was purchased by Newport Corporation for making pneumatic vibration isolators cost $90,000 two years ago. It has a market value that can be described by the relation $90,000 − 8000k, where k is the years from time of purchase. The operating cost for the first 5 years is $65,000 per year, after which it increases by $6300 per year. The asset’s salvage value was originally estimated to be $7000 after a predicted 10-year useful life. Determine the values of P, S, and AOC if (a) a replacement study is done now and it is assumed that the equipment will be kept a maximum of only 1 more year, and (b) a replacement study is done 1 year from now and it is assumed that the equipment will be kept a maximum of only 1 more year after that.A small strip-mining coal company is trying to decide whether it should purchase or lease a new clamshell. If purchased, the “shell” will cost $140,000 and is expected to have a $45,000 salvage value after 6 years. Alternatively, the company can lease a clamshell for only $14,000 per year, but the lease payment will have to be made at the beginning of each year. If the clamshell is purchased, it will be leased to other strip-mining companies whenever possible, an activity that is expected to yield revenues of $10,000 per year. If the company’s MARR is 12% per year, should the clamshell be purchased or leased on the basis of a future worth analysis? Assume the annual M&O cost is the same for both options. The future worth when purchased is $ . The future worth when leased is $ .An expansion of the current BIM (Building Information Model) software has been proposed to First Financial, the building’s owner. A total installed cost of $120,000 is expected to generate additional savings of $40,000 per year for 10 years, after which time the software will be replaced with no salvage value. The annual M&O cost is expected to be $10,000 the first year and increase by an arithmetic gradient G between $1000 and $5000 per year thereafter. Determine if the expanded BIM is sensitive to gradient increases of $1000 (optimistic), $3000 (most likely), and $5000 (pessimistic) per year. Use AW analysis and a MARR of 10% per year.
- In the process of performing a replacement study, an engineer at a fiber optics manufacturing company has two options to reduce costs on a production line. The currently owned Robot X can be sold now for $82,000. If kept, it will have an annual M&O cost of $30,000, and salvage values of $50,000, $42,000, and $35,000 after 1, 2, and 3 years, respectively. A challenger, Robot Y, will have a first cost of $97,000, an annual M&O cost of $27,000, and salvage values of $66,000, $56,000, and $42,000 after 1, 2, and 3 years, respectively. Which robot should be selected if a 2-year study period is used at an interest rate of 12% per year? Solve by two ways: by hand and by spreadsheet.Please answer by hand calculations not excel:A presently owned machine can last 3 more years, if properly maintained at a cost of $15,000 per year. Its AOC is $31,000 per year. After 3 years, it can be sold for an estimated $9000. A replacement costs $80,000 with a $10,000 salvage value after 3 years and an operating cost of $19,000 per year. Different vendors have offered $10,000 and $20,000, respectively, for the current system as trade-in for the replacement machine. At i = 12% per year, perform a replacement study and determine whether the defender should be retained or replaced. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.one factory manager bought a rare machine for $10 million. It is estimated that the sales value of the machine at the end of the first year will be $3 million and the machine will be worth $500,000 due to the demand by the antique dealers. The maintenance cost is expected to be $300,000 in the first 3 years and double each year thereafter. In this way, the maintenance cost of the 4th year is $600,000, the maintenance cost of the 5th year is $1,200,000, etc. Calculate the economic life of this machine based on a 15% MCVO. A) 7 B) 3 C)12 D) 6 E) 9