Compare three mutually exclusive alternatives on the basis of their capitalized costs at i =10% per year. Alternative First cost, $ АОC, $/year Salvage value, $ Life, years A1 50,000 -30,000 5,000 B2 300,000 10,000 70,000 C3 900,000| 3,000 200,000
Q: [BONUS] An equipment has a first cost of 500,000 PHP and the cost of installation is 30,000 PHP. At…
A: Given the first cost = 500,000 PHP Installation cost = 30,000 PHP Annual usage = 5400 hours
Q: The CFO for Woodsome Appliance Company Plant #A14 in Mexico City has five independent projects she…
A: a. When there is no limit, select all the bundles that have a positive present worth. Thus, select…
Q: e ore of a gold nine in the Mo ntains, on the average, 0.5 gram of gold per tor thod A of processing…
A: The net value or net profit is the difference between the total profit and the total cost.
Q: Locations under consideration for a border patrol station have their costs estimated by the federal…
A: We are going to use incremental benefit cost ratio to answer this question.
Q: You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for…
A: Present value table method is a method which is used to know about the present worth and future…
Q: Machines that have the following costs are under consideration for a robotized welding process. Use…
A: Present worth = -P+(AR-Am)( P/A,i%,n)+F(P/F,i%,n)where P is the initial cost, AR is the annual…
Q: Land Submarine| Route Route Length, 10 miles First cost of cable per P48,277 P68,390 mile Annual…
A: LAND ROUTE Length (miles) = 10 First cost of cable per mile = P48,277 Cost of cable = 48,277 * 10…
Q: A company with a MARR of 15% must install one of two production machines that provide equivalent…
A: X Y Initial Cost 40,000 60,000 O&M 30,000 20,000 Salvage Value 5000 12,000 life 5 5…
Q: Dexcon Technologies, Ic., is evaluating two alternatives to produce its new plastic filament with…
A: * SOLUTION :- (7) Given that ,
Q: Iternatives are being considered. Alternative 1 - One-stage construction: Build a four lane bridge…
A:
Q: Dexcon Technologles, Inc., Is evaluating two alternatives to produce its new plastic filament with…
A: Method DDM LS First Cost 140000 480000 M&O 30000 35000 Salvage Value 6000 29000 Life 2 4
Q: Leonard Motors is trying to increase its international export business. It is considering several…
A: Option 1: Equipment cost is $900,000. The cost in the second year is $560,000. Annual maintenance…
Q: Chemical processing corporation is considering three methods to dispose of a non- hazardous chemical…
A: Three methods which are given to dispose non-hazardous chemical sludge are:- Land application(…
Q: A manufacturing process at Core Manufacturing has a fixed cost of $60,000 per month. A total of 120…
A:
Q: round knife. The estimates are summarized below. Compare them on the basis of annual worths at i=…
A: Given Round knife Straight knife First cost -300,000 -210,000 AOC per year -42,000…
Q: A chemical processing corporation is considering two methods to dispose of a non-hazardous chemical…
A: The present Worth Comparison technique is to look at the expense and advantages of the present year…
Q: 4.39 Three alternatives to incorporate improved tech- niques to manufacture computer drives to play…
A: The gift value technique analysis of the study is an equivalence technique during which the money…
Q: (b) Use the easiest technique to determine which one of the following alternatives should be…
A:
Q: Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with…
A: Here we calculate the Present worth for the DDM and LS by using the given data and choose the best…
Q: USE CO-TERMINATED AND PRESENT WORTH in solving the problem. Show cash flow diagram and complete…
A: Given information : Alternative A Alternative B First Cost 72000 90000 Annual Cost 2200…
Q: You have been selected to prepare the following analysis of cost alternatives and select the…
A: Given: MARR=12% Study Period=10 years
Q: 2.) Three mutually exclusive design alternatives are being considered. The estimated cash flows for…
A: Since you have posted multiple questions as per the guidelines we can solve only 1 question at a…
Q: An upgraded version of a CNC machine has a first cost of $200,000, an annual operating cost of…
A: Annual worth can be calculated as follows:
Q: The alternatives shown on the basis of their capitalized costs using an interest rate of 10% per…
A: A B First Cost, SR -100000 -800000 Annual Operation Cost -70000 -12000 Salvage value, SR…
Q: Alternative X has a first cost of 34000 an annual operating cost of 6500 , and a salvage value of…
A: Present worth = -P+(AR-Am)( P/A,i%,n)-+F(P/F,i%,n)where, P is the initial cost, AR is the annual…
Q: From the PW, AW, and FW values shown, the conventional B/C ratio is closest to: Ка) 1. 27 (b) 1. 33…
A: B/C analysis i.e. benefit-cost analysis gives the ratio of benefits and costs in the same period. It…
Q: Compare the alternatives shown below on the basis of a future worth analysis, using an interest rate…
A:
Q: Complete the following analysis of cost alternatives and select the preferred alternative. The study…
A:
Q: Alternative A Alternative B Alternative C $75,000 $20,435 $75,000 $16,212 $100,000 $22,675 Initial…
A: GIVEN A firm is considering the purchase of a new machine to increase the output of an existing…
Q: Alternative X has a first cost of 9000 an annual operating cost of 1500 , and a salvage value of…
A: Present worth (PW) can be calculated by using the following formula.
Q: ndustry has spend on as many as 3 cis to ennance her usiness. Use the PW method to determine which…
A: Here we calculate the present worth of the all product and compare and select the best investment so…
Q: An investment of P270,000 can be made in a project that will produce a uniform annual revenue of…
A: The present worth technique of analysis is an equivalence method in which the cash flows of a…
Q: MARR = 30% A B Initial Investent -12,000 18,000 5,000 2:500 7.000 9:000 Estimated net income per…
A: Given information Two project Project A Initial investment=12000 Net income per year=5000 Salvage…
Q: Complete the following analysis of cost alternatives and select the preferred alternative. The study…
A: Initial Investment = 13,500 Annual Cost = 450 Salvage Value = 1,700
Q: An oil company plans to purchase a piece of vacant land at the corner of two busy streets for…
A:
Q: Using the PW analysis on the basis of their capitalized cost to compare the Mutually Exclusive (ME)…
A: For Machine B: Initial cost (C) = 8,000 Operating Cost (OC) = 2500 Salvage (S) = 1000 Useful life =…
Q: A company is trying to decide whether to keep a fork-truck in their factory or to purchase a new…
A: Given, Two Options : Existing Fork -Truck or New Fork-TruckThe Existing Fork-Truck can be solf for…
Q: You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for…
A: Present worth The measure of money today that is identical in worth to an installment, or to a…
Q: Motor A and B is providing 150hp and it is being used for 10 hours per day, 250 days in a year if…
A: Let x be the number of pieces of model A and y be the number of pieces of model B. Let total profit…
Q: Ss control manager is considering two robots to improve materials-handlif uction of rigid shaft…
A: *Answer: Given Information Robot X : First Cost = $ 94000 Annual M&O Cost = $ 31,000 Salvage…
Q: now for $300,000, and then build a second parallel half-capacity tu $300,000. Each tunnel must be…
A: Full-capacity tunnel Alternative- 1: Computation of total as on today Cost of the project as on…
Q: Problem 4: Consider these two alternatives. Alternative A Alternative B Capital investment OMR…
A: 1. Calculating the interest factor : NPW of alternative A : Now estimate the NPW of alternative…
Q: Compare three alternatives on the basis of their capitalized costs at i = 10% per year. Alternative…
A:
Q: 2. Three mutually exclusive design alternatives are being considered. The estimated sales and cost…
A: GIVEN Three mutually exclusive design alternatives are being considered. The estimated sales and…
Q: It is proposed to place a cable on an existing pole line along the shore of a lake to connect two…
A: We are going to calculate EUAC for each alternative to answer this question.
Q: Using the PW analysis on the basis of their capitalized cost to compare the Mutually Exclusive (ME)…
A: For Machine A: Initial cost (C) = 12,000 Operating Cost (OC) = 3500 Salvage (S) = 3500 Useful life…
Q: Blue Whale Moving and Storage recently purchased a warehouse building in Santiago. The manager has…
A: Given, Capacity = 4000-pound Electricforklift P = $−30,000 n = 12 years AOC =$−1000 per year; S =…
Q: Q4. The cash flow details of a public project is as follows Initial cost /investment = BD 250000…
A: Here we calculate the value of PW , FW and AW by using the given information and conclude the…
Q: The alternatives are mutually exclusive and the MARR is 6% per year. Vendor 1 Vendor 2 Vendor 3 -…
A: please find the answer below.
Step by step
Solved in 2 steps
- Two machines can be used to produce a part from titanium. The costs and other cash flows associated with each alternative are estimated. The salvage values are constant regardless of when the machines are replaced. Determine which alternative(s) should be selected for further analysis if alternatives must have a payback of 5 years or less. Perform the analysis with (a) i = 0%, and (b) i = 10% per year. Machine Semiautomatic Automatic First cost, $ −40,000 −90,000 Net annual income, $ per year 10,000 15,000 Maximum life, years 10 10 Salvage value, $ 0 0A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects shown, all of which can be considered to be viable for only 10 years. If the company’s MARR is 15% per year, determine which should be selected on the basis of a present worth analysis. Financial values are in $1000 units. A B C D First cost, $ −1,200 −2,000 −5,000 −7,000 Annual net income, $/year 200 400 1100 1300 Salvage value, $ 5 6 8 7Compare two alternatives for a physical security system surrounding a power distribution substation using annual worth analysis and a MARR of 10% per year. System Condi Torro First cost, $ −25,000 −130,000 M&O cost, $ per year −9,000 −2,500 Salvage value, $ 3,000 100,000 Life, years 3 ∞
- Two processes are being considered for the production of a machine part. Process 1 requires an equipment cost of P180 000.00, a yearly operating cost of P90 000.00, and has zero salvage value at the end of its 6-year life. Process 2 has corresponding figures of P320 000.00, P72 000.00, P45 000.00 and 9-year life. If the applied MARR is 20%, compare the two processes using PW analysis. (Ans. PT1 = -P693 567.36; PT2= - P718 084.62)- Please use and actual formula NOT AN EXCEL PLEASE. We are students not office workers.A company is trying to decide whether to keep a fork-truck in their factory or to purchase a new one. The existing fork-truck can be sold now for $28,000 or kept for another 5 years with an overhaul now costing $8,250. If the MARR is 10% should the company buy a new AVG now or keep the existing vehicle? Existing Fork-truck New Fork-truck Initial price cost, $ -34,250 (5 yrs ago) -38,250 AOC, $ -5,500 -7,800 Salvage value, $ 2,500 5,500 Life, yrs 10 12You 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 11% per year? Why is yours the correct choice? Alternative X Y First Cost $-30,000 $-60,000 Maintenance cost, per year $-9000 $-3000 Salvage Value $1,500 $2,500 Life 5 years 5 years The present worth of alternative X is $ __ and that of alternative Y is$ __. Alternative __ is selected by the company.
- Machines that have the following costs are under consideration for a robotized welding process. Use an interest rate of 10% per year and PW analysis to determine which machine should be selected. Machine X Machine Y First cost, $ −250,000 −430,000 AOC, $ per year −60,000 −40,000 Salvage value, $ 70,000 95,000 Life, years 3 6The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. Pull System Push System First cost of equipment $-1,300,000 $-2,400,000 AOC per Year $-720,000 $-520,000 Salvage Value $110,000 $100,000 Estimated Life 8 years 8 years Compare the annual worth of the two systems at MARR = 14% per year. Select the better system. The (Click to select) pull system push system is determined to be the better system.An investment of P270,000 can be made in a project that will produce a uniform annual revenue of P185,400 for 5 years and then have a salvage value of 10% of the investment. Out-of-pocket cost for operation andmaintenance will be P81,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 25% before income taxes. (a) Future Worth Method(b) Present Worth Method What is the future worth of net cash flows
- 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 15% per year? Why is yours the correct choice? Alternative X Y First Cost $-25,000 $-80,000 Maintenance cost, per Year $-13000 $-7000 Salvage Value $3,500 $4,500 Life 5 years 5 years The present wortYou 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 5A newly proposed project has a first cost of $ 230815 and estimated annual income of $49110 per year for 10 years. Determine the PW value if the MARR is 11.9% per year.