Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when MARR is 12 % per year.Pertinent cost data are as follows: (Power Plant (thousands of $) Investment Cost: $12693 Useful life: 15 ears Market Value (EOY 15): $3,000 Annual Operating expenses: $1,000 Overhaul cost- end of 5th year: $1897 Overhaul cost-end of 10th year. $1819
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- 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.The CFO for Woodsome Appliance Company Plant #A14 in Mexico City has five independent projects she can fund this year to improve surface durability on stainless steel products. The project investments and 18%-per-year PW values are as shown. What projects should be accepted if the investment limit is (a) no limit, and (b) $55,000? Initial PW at 18% Project Investment, $ per Year, $ 1 −15,000 −400 2 −25,000 8500 3 −20,000 500 4 −40,000 −5600 5 −52,000 9800A company planning to manufacture Webcams has to decide on the location of the production facility. Three location are being considered A, B and C. the fixed costs at the three locations are estimated to be $40000, $65000, and $32000 per year respectively. The variable costs are $4, $2.5 and $4.5 per unit, selling price in three location is $110, $180 and $90 respectively. Maximum capacity is 12000 unit/year in A, 19500 unit/year in B and 9600 unit/year in C. Find the following below: 1- Break- Even quantity in three location2- Profit or loss in location A when quantity is 400 and 300 3- Profit or loss in location B when quantity is 350 and 450 4- Profit or loss in location C when quantity is 425 and 325 5- Maximum revenues in A, B and C6- Range of profit at Demand in A, B and C Sketch the Break – Even chart each three location
- 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?Solve all this question......you will not solve all questions then I will give you down?? upvote.... Jenny is an engineer for a municipal power plant. The plant uses natural gas, which is currently provided from an existing pipeline at an annual cost of $10000 per year. Jenny is considering a project to construct a new pipeline. The initial cost of the new pipeline would be $35000, but it would reduce the annual cost to $5000 per year. Assume an analysis period of 20 years and no salvage value for either the new or existing pipeline. The interest rate is 6%. Show work a) Determine the equivalent uniform annual cost (EUAC) for the new pipeline. b) Should the new pipeline be built?Help....... Solve Write Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $23 per unit. A. What is the breakeven point in (a) sales units and (b) sales dollars? B. How many units must the Write Company sells to earn a profit of $240,000 per year?
- 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 IRRSeawater 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.2. Two methods can be used for injection molding insulin injection pens. Method A Molding costs $120,000 initially and will have a $30,000 salvage value after 5 years. The operating cost with this method will be $20,000 per year. Method B Molding will have a first cost of $150,000, an operating cost of $15,000 per year, and a $40,000 salvage value after its 6 - year life. Determine which method should be selected at a MARR of 10%. - Use Present Worth Analysis Solve in Excel
- 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 6Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows : Power Plant (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 USING FUTURE WORTH (FW)6. Electrical switch manufacturing companies must choose one of three different assembly methods. Method A will have an initial cost of $40,000, annual operating costs of $9,000, and a 2 year lifetime. Method B will cost $80,000 to purchase and will have an annual operating cost of $6,000 over its 4 year service life. Method C will cost $130,000 initially with an annual operating cost of $4,000 over its 8 year life. Methods A and B will have no salvage value, but method C will have a salvage value for some equipment that is approximately $12,000. Which method to choose? Use present value analysis at an interest rate of 10% per annum if the alternatives are mutually independent A. A and B B. B and C C. C D. There is no economically feasible solution Please solve based the option max 15 minutes ASAP