For the cash flows shown, determine the incremental cash flow between machines Band A for (a) year 0, (b) in year 3, and (c) in year 6.MachineFirst Cost, $АОС, $/yearSalvage value, $ 3,000Life, yearsB-15,000 -25,000-1,600-4006,00034O (a) = -10000 (b) = -1800 (c) = 1200%3D!3!O (a) = -10000 (b) = 13200 (c) = 4200!3!%3!O (a) = -10000 (b) = 13200 (c) =6000%3!%3DO (a) = -10000 (b) = 13200 (c) = 13200%3D

Given: First Cost: A: -15000, B:-25000

For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ AOC, $/year Salvage value, $ 3,000 Life, years A B -15,000 -25,000 -1,600 -400 6,000 3 4 (a) = -10000 (b) = -1800 (c) = 1200 %3D (a) = -10000 (b) = 13200 (c) = 4200 %3D %3D (a)= -10000 (b) = 13200 (c) =6000 O (a) = -10000 (b) = 13200 (c) 13200

For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ AOC, $/year Salvage value, $ 3,000 Life, years A B -15,000 -25,000 -1,600 -400 6,000 3 4 (a) = -10000 (b) = -1800 (c) = 1200 %3D (a) = -10000 (b) = 13200 (c) = 4200 %3D %3D (a)= -10000 (b) = 13200 (c) =6000 O (a) = -10000 (b) = 13200 (c) 13200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Arc-bot Technologies, manufacturers of six-axis, electric servo-driven robots, has experienced the cash flows shown in a shipping department. (a) Determine the number of possible rate of return values. (b) Find all i* values between 0 and 100%. Year Expense, $ Savings, $ 0 −33,000 0 1 −15,000 18,000 2 −40,000 38,000 3 −20,000 55,000 4 −13,000 12,000
there are three machines in the mechanicle angineering lab A ,B , and C and need to be evaluted economically, machine A has first cost of $4500,an annual operating cost(AOE) of $900, a salvage value of $200 and a service life 4 year. machine B has first cost of $3500, an annual operating cost(AOE) of $700, a salvage value of $350, and a service life 4 year. machine C has first cost of $6000, an annual operating cost(AOE) of $50, a salvage value of $100 and a service life 8 year. which machine should be selected ? the MARR is 10% per year. (a) machine A (B) machine B (c) machine C (d) none
The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each How many uint must be sold to realize profit of brirr 4000?
An electronics firm invested $50,000 in a precision inspection device. They spend $1500 each year to operate and maintain it. An additional $750 is spent in years 2 and 4 for software updates. At the end of 5 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate to sell the inspection device for $40,000, the original price. Compute the equivalent uniform annual cost during the 5 years the device was used. Assume interest at 10% per year.
(engineering economic) The $56000 loan bears interest at 12% annually and must be repaid in uniforrm annual installments over 12 years. After the 6th installment is paid, the bank offers a change in interest from an annual to a monthly rate. For borrowers who are willing to follow the new interest will get cash back (loan reduction of 10% of the remaining loan. How many annual installments for the first 6 years before interest changes and the last 6 years after interest changes?
A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $36,000, an operating cost of $4000, and a salvage value of $15,000 after 3 years. A Ford model will have a first cost of $32,000, an operating cost of $3100, and also have a $15,000 resale value, but after 4 years. (a) At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis. (b) What are the PW values for each vehicle?
As an engineer, you are responsible to find the best alternative that is economically best. The cash flows shown in the table and the MARR is 11 % per year. Then please answer the following questions. Cash Flow Project 01 Project 02 Project 03 First Cost, $ -90000 220000 230000 Annual Cost, $ Per Year -60000 -21000 -17000 Overhaul Every 10 Years, $ _ _ -60000 Salvage Value, $ 8000 29000 11000 Life, Years 3 10 a) Find the Aw for Project 01. b) calculate the AW for Project 02 c) Calculate Aw for Project 03. What is your decision?
Engineering Economics 00013 Please provide a step by step solution using Rate of Return (ROR) Thankyou
The 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 electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and maintain in the first year and $3000 in each of the subsequent years. At the end of 4 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate in being able to sell the inspection device for $60,000, the original price. The plant manager asks you to compute the equivalent uniform annual cost of the device during the 4 years it was used. Assume interest at 6% per year. Please show work, preferably not with excel. Will Upvote!
You plan to make a lump-sum deposit of $5000 now into an investment account that pays 6% per year, and you plan to withdraw an equal end-of-year amount of $1000 for 5 years, starting next year. At the end of the sixth year, you plan to close your account by withdrawing the remaining money. Define the engineering economy symbols involved.
A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will be $10,000 per quarter with a salvage value of $25,000 after its 2-year life. Process B will have a first cost of $250,000, an operating cost of $15,000 per quarter, and a $40,000 salvage value after its 4-year life. The interest rate is 8% per year compounded quarterly. Using present value analysis which process should be selected.