An engineering analysis by net present worth (NPW) is to be made for the purchase of two devices A and B (both useful life of 10 years. If an 8% interest rate is used, recommend the device to be purchased. Uniform Cost Annual Benefit Salvage $250 Device A $600 $100 Device B 700 100 180 1. Find PWA = $ Blank 1 2. Find PWg = $ Blank 2 3. Select Device Blank 3 Note: Round to two decimal places your answer for a & b. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer
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- An interest rate of 15% is used to evaluate a new system that has a first cost of $212,400, annual operating and maintenance costs of $41,200, annual savings of $94,600, a life of 6 years, and a salvage value of $32,500. After initial evaluation, the firm receives word from the vendor that the first cost is 5% higher than originally quoted. The percentage error in the system’s present worth from this is closest to what value? (a) 5% (b) 15% (c) 100% (d) 300%A firm is trying to decide which of two machines to purchase as described in in the table below. Using the interest rate 9% or 0.09, use present worth analysis to determine which machine, if either, should be purchased. Show all your work. Machine: A - B First Cost: $800 - $600 Annual Net Benefit: $130 - $230 Salvage Value: $40 - $20 Usefil Life (years): 9 - 3A company is considering two alternatives with regards to equipment which it needs. The alternatives are as follows: Alternative A:PurchaseCost of Equipment 700,581Salvage Value 105,896Daily operating cost 534Economic life, years 10 Alternative B: Rental at 1,539 per day. At 18% interest, how many days per year must the equipment be in use if Alternative A is to be chosen.
- A concrete vibrating equipment will be purchased for a cost of $107,425. After a useful life of 5 years it is assumed the equipment will be sold for $33,450. Assume interest of 7.5% for borrowing money, 4.3% for risk, and 2.2% as the equivalent interest rate fortaxes, insurance, and storage, Calculate the annual ownership cost and the cost per hour assuming the equipment will be used 1920 hr. /yr.An engineering consultancy firm makes an economic analysis of two machines that will be purchased. Machine B has an estimated life span of 14 years and would cost P20,000 with an annual maintenance cost of P300. Machine A has an estimated life span of 6 years and would cost P10,000 with an annual maintenance cost is expected to be 20% less with the Machine B. There will be an annual insurance cost that amounts to the 1% of the first cost of the machines. Machine A was a disposable machine while Machine B can be salvaged for P6,000. Based on its annual worth, what should the consultancy firm choose if the minimum attractive rate of return is 8% per annum.A company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.b) Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%.c) Which product should be chosen and why?d) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.e) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.
- Two types of power converters are under consideration for a specific application. An economic comparison is to be made using a MARR of 10% and the following cost estimates: Alternative Model A Model B Service Life (Years) 5 10 First Cost $10,000 $20,000 Salvage Value 0 5,000 Annual Operating Cost 2,500 1,200 Draw the Cash Fiow Diagram for each alfernative covering the entire analysis period. Compute the Net Present Worth for Model A? Compute the Net Equivalent Uniform Annual Worth for Model A? Which of these alternatives should be selected?Given: the price of equipment purchased (present value) is 52,000. interest is placed at 7%. expected life of equipment is 20 years. the electricity is 45 cents per kWh. for interest rate of 7% and number of period of 20 years, the (p/A, i , N) factor is 10.594. the annual kWh savings : 6419.40 kWh Find :the present net value and the IRR value of this scenario. note: please let me know you need any extra informationThe top management required you to compute the accumulated amount of the machine that will improve the production efficiency based on your recommendation. The money is to be loaned to BPI @ 10% interest rate compounded mounthy. A) Purchase Price = P200,000. B) Period of Payment = 5 years.
- A new robot has a first cost of $380,000, and an annual operating cost of $88,000 in years 1 and 2, increasing by $10000 per year thereafter. The salvage value of the system is $25,000 regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 14% per year, determine the ESL and the respective AW value of the system ESL: a) 1 year b) 4 years c) 5 years d) 3 years AW value of system: a) $204,860 b) $336,284 c) $97,953 d) $496,200You are given opportunity to purchase product for $42, 000. The product will have annual operating expenses of $4,000, and a salvage value of $20,000 at the end of its useful life of 6 years. Assuming a discount rate of 9.0%, what is the minimum acceptable revenue to justify taking this project? A 1.01% B $333 C $2704 D $767 E $10704The cost of an equipment is P650,000 and the cost of installation is P45,000. If the salvage value is 12% of the cost of equipment at the end of 10 years, determine the book value at the end of the fourth year. a. Use straight-line method (SLM) b. Use sinking fund method (SFM) at 3.5% interest. Please answer completely will give rating surely Please answer very soon