Maintenance costs for a new system are estimated to be $250,000 in year 3 and $175,000/year in years 4 to 10 of an expected 10-year life system. If similar systems will replace the current one, determine the equivalent annual maintenance cost at i = 8% per year.
Q: Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its…
A: Time period is denoted by ‘n’ and interest rate is denoted by ‘i’. It is given that the cost of pump…
Q: A parcel of land in a downtown area, suitable for parking lot, can be leased for a period of 10…
A: Given the time period = 10 years Initial development cost = P150000 Net annual revenue for the first…
Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…
A: Given Initial cost or first cost of the equipment P=$750,000 Operating cost =$240,000 per year…
Q: A construction management company is examining its cash flow requirements for the next few years.…
A: Future worth represent the worth of the present asset with determined rate of growth , if the Future…
Q: The packing cooling tower that cools condensing water for a power plant progressively detcriorates…
A: Answer in step 2.
Q: A West Virginia coal mining operation has installed an in-shaft monitoring system for oxygen tank…
A: Given: The maintenance cost is = $150,000 in year 3 In year 4 = $175,000 And increases by = $25,000…
Q: The annual worth for years 1 through infinity of $50,000 now, $10,000 per year in years 1 through…
A: Annual worth: The yearly worth is the net of the relative multitude of advantages and costs caused…
Q: Turik Electronics manufactures microprocessor based soft starters that use thyristors for controlled…
A:
Q: A large water utility is planning to upgrade its SCADA system for controlling well pumps, booster…
A: First we find PW of savings. PW ($) = 14,000 + [14,000 x P/A(8%, 3)] + [9,000 x P/A(8%, 7) x P/F(8%,…
Q: US. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…
A: Present value refers to the worth of a sum of money that one is going to receive in the future…
Q: The production of polyamide from raw materials of plant origin, such as castor oil, requires 20%…
A: Given Amount borrowed, P =$6 million, Rate of interest = 10%, Time, N=10 years Therefore, Annual…
Q: Determine the size of your investment account 30 years from now (when you plan to retire) if you…
A: Given information: A = amount deposited every year = $12,000 t = time period in years = 30 r = 10%…
Q: Self-tightening wedge grips are designed for tensile testing applications up to 1200 pounds. The…
A: Net cash flow refers the difference between the revenue and expenses. The Table-1 shows the net cash…
Q: Lifetime Savings Accounts, known as LSAs, allow people to invest after-tax money without being taxed…
A: Future worth can be calculated as follows:
Q: Acme Manufacturing Company is considering purchasing a maintenance contract for its new waste…
A: To Compute the uniform annual payment, first compute the presents worth of the contract amount as…
Q: Insulated concrete forms (ICF) can be used as a substitute for traditional wood framing in building…
A: Internal rate of return(IRR) refers to the discount-rate that converts the net-present-value(NPV)…
Q: Freeport McMoran purchased two model MTVS peristaltic pumps (to inject sulfuric acid and King Lee…
A: Given information: • Cost of each pump is $950. • Chemical cost is $11 per day. • Time period is 3…
Q: If a manufacturer of electronic devices invests $650,000 in equipment for making compact…
A: (a) Investment (I) is $650,000. Rate of return from the investment (RR) is $225,000 per year. Time…
Q: A $10,000 loan amortized over 5 years at an interest rate of 10% per year requires payments of $2638…
A: Borrowing amount (B) is $10,000. Time period (n) is 5. Interest rate (i) is 10%. Annual payment (A)…
Q: Automobiles of the future will most likely be manufactured largely with carbon fibers made from…
A: The time period can be denoted as ‘n’, and interest rate can be denoted as ‘i’.
Q: Sakura Energy, a Malaysian brent oil trading company, would like to export 100,000 barrels of brent…
A: International trade refers to the exchange of goods and services for money outside the domestic…
Q: The State of Chiapas, Mexico, decided to fund a program for improving reading skills in elementary…
A: Ans Solution
Q: The maintenance cost of Ford Manufacturing Plant, Dearborn, Michigan will increase according to an…
A: Equivalent annual worth gives the value or the amount that is incurred as cost in the maintenance of…
Q: Darnell Enterprises constructed an addition to its building at a cost of $70,000. Extra annual…
A: Net cash flow can be calculated as follows:
Q: The property appraisal district for Marin County has just installed new software to track…
A: Suppose, installed cost is $2,500,000 and additional cost is $700,000. Annual software maintenance…
Q: The maintenance on a machine is expected to be 5603 for the second year and an additional P1,750…
A:
Q: An Alumna of Eastern Mediterranean University wanted to set up an endowment fund that would award…
A: Here we calculate the amount of alumna donate by calculating the capital cost , so the calculation…
Q: A construction company plans to accelerate the payments on an equipment loan as production…
A: The annual value of owning, operating, associated maintaining an quality over its entire life is…
Q: A large water utility is planning to upgrade its system for controlling well pumps, booster pumps,…
A: The first phase will reduce labor and travel costs by $14,000 per year. The second phase will reduce…
Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…
A: Given; Original purchase price= $700000 Operating cost has averaged= $250000 Selling price of…
Q: An Indium-Gallium-Arsenide-Nitrogen alloy developed at Sandia National Laboratory is said to have…
A: extra investment = $950,000 extra revenues = $450,000
Q: An engineer received a bonus of $12,000 that he will invest now. He wants to calculate the…
A: P = $12,000F =?i = 8% per yearn = 24 years.standard notation: Determine F, using the F/P factor for…
Q: A large water utility is planning to upgrade its system for controlling well pumps, booster pumps,…
A: Given, 1st phase Cost- 14000 2nd phase cost- 9000 Rate of interest- 8%
Q: The cost of painting the public bridge is $4000. If the bridge is painted now and every 2 years,…
A: Capitalized Costs are considered those costs which are mostly long-term like fixed assets building…
Q: The National Institute on Drug Abuse has spent $15 million on clinical trials to find out whether…
A: The given information: Interest rate =8% Time period = 5 Gradient = 15%
Q: At an interest rate of 10% per year, the perpetual equivalent annual cost of $70,000 now, $100,000…
A: Given the interest rate = 10% Current perpetual equivalent cost = $70000 At the end of six year =…
Q: A small business purchased now for P50,000 will lose P9,600 each year for the first four years. An…
A: Return on investment (ROI) is a popular financial metric for calculating the likelihood of a profit…
Q: Cisco, Inc. has a proposal from the Engineering Planning Division to invest some of the Cisco…
A: The yearly cost of owning, operating, and maintaining an asset throughout its full life cycle is…
Q: office building has been constructed at a cost of $3,000,000. It is estimated to have a life of 50…
A: Net Present worth = Present Worth of Cash Inflows - Present Value of Cash Outflows. A positive NPV…
Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…
A: “Since you have posted a question with multiple parts, we will solve only first parts for you. To…
Q: An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing…
A: Future value can be calculated as follows.
Q: A company is considering purchasing equipment costing $70,000. The equipment is expected to reduce…
A: Initial Cost = 70,000 First 3 year Saving = 7,000 From Year 4 to 8 Saving = 10,000 year 9 saving =…
Q: U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…
A: Answer in step 2
Q: Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its…
A:
Q: Problem 3. If the operating cost for a machine is $22,000 per year for years 1 and 2 and then it…
A: Operating cost, year 1 = 22,000 Operating cost, year 2 = 22,000 Operating cost, year 3 = 22,000 +…
Q: The cash flow associated with a strip mining operation is expected to be P2,000,000 in year 1,…
A: Formula: AT…
Q: the cost of painting the golden gate bridge is $400000. if the bridge is painted now and every years…
A: here we can calculate the capitalized cost of painting at an interest rate of 6% per year as follow…
Q: The cost of updating an outdated production process is expected to be $81,000 four years from now.…
A:
Q: Your firm is thinking about investing $300,000 in the overhaul of a manufacturing cell in a lean…
A: Given values: Investment amount = $300000Revenue of the first year = $33000Increase in revenue per…
Q: COSTS OF $ $10,000 per year. It will also have major repairs Costing $80,000 that occur at years 10,…
A: The equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset…
Step by step
Solved in 2 steps
- U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $15 million now and another $10 million 1 year from now. If total operating costs will be $1.3 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 11 to recover its investment plus a return of 24% per year? The company must make $ ? million annually in years 1 through 11 to recover its investment plus a return of 24% per year.. A West Virginia coal mining operation has installed an in-shaft monitoring system foroxygen tank and gear readiness for emergencies. Based on maintenance patterns for previoussystems, costs are minimal for the first few years, increase for a time period, and then level off.Maintenance costs are expected to be $150,000 in year 3, $175,000 in year 4, and amountsincreasing by $25,000 per year through year 6 and remain constant thereafter for the expected10-year life of this system. If similar systems will replace the current one, determine theperpetual equivalent annual maintenance cost at i = (2+x) % per year.An oil refinery finds that it is necessary to treat the waste liquids from a new process before discharging them into a stream. In-house treatment will have an annual cost of $50,000 the first year, but process improvements will allow the annual cost to decline by $5,000 each subsequent year. As an alternative, an outside company will process the wastes for an initial cost of $32,400 and an annual fixed price of $30,400/year throughout the 13 year period. Either way, there is no need to treat the wastes after 13 years. Using the AW method, calculate the equivalent uniform annual cost (EUAC) of each alternative and determine how the waste should be processed. The company's MARR is 8%. LOADING... Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year.
- A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately $18,000 per year over the six-year study period. At MARR of 19%, calculate the internal rate of return of the project.Adams Manufacturing spent $30,000 on a new sterilization conveyor belt, which resulted in a cost savings of $4202 per year. The length of time it should take to recover the investment at 8% per year is closest to: (a) Less than 6 years (b) 7 years (c) 9 years (d) 11 yearsA large water utility is planning to upgrade its SCADA system for controlling well pumps, booster pumps, and disinfection equipment, so that everything can be controlled from one site. The first phase will reduce labor and travel cost by $14,000 per year. The second phase will reduce costs by additional $9,000 per year. If Phase-I savings occur in years 0, 1, 2, and 3 and Phase-II occurs in years 4 through 10. Determine the equivalent worth of the upgraded system in years 1 through 10 at an interest rate of 8% per year.
- An aerospace industry decides to purchase a new advanced machine.the cost of the machine are estimated to have a 4year useful life .if the MAAR Is 2096 per year . Determine which machine should be purchased on the basis of a role of return analysis. $annual operation cost 16,000,19,000 $first cost machine 31,000, 29,000Cisco, Inc., has a proposal from the Engineering Planning Division to invest Cisco retained earnings in the design, testing, and development of the next generation of smart grids useful in the Internet of Things (IoT) environment. The initial investment projection is $4,200,000 in year 0, $2,300,000 in year 3, and $85,653 in years 11 and beyond. At i = 11% per year, calculate the infinite-life equivalent annual cost in years 0 through infinity of the proposal. The infinite-life equivalent annual cost is determined to be $.............An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital investment for the plant is $570 million, spread evenly over two years. The operating life of the plant is expected to be 20 years. Additionally, the plant will operate at full capacity 75% of the time (downtime is 25% of any given year). The MARR is 6% per year Cash flow diagram only Thank you No need calculation
- Cisco, Inc., has a proposal from the Engineering Planning Division to invest Cisco retained earnings in the design, testing, and development of the next generation of smart grids useful in the Internet of Things (IoT) environment. The initial investment projection is $4,300,000 in year 0, $2,100,000 in year 3, and $113,057 in years 11 and beyond. At i = 15% per year, calculate the infinite-life equivalent annual cost in years 0 through infinity of the proposal.The cash flow associated with a strip mining operation is expected to be P2,000,000 in year 1, P1,800,000 in year 2, and amounts decreasing by P200,000 per year through 10. At an interest rate of 12% per year, find the equivalent annual cash flow.A large water utility is planning to upgrade its system for controlling well pumps, booster pumps, and disinfection equipment, so that everything can be controlled from one site. The first phase will reduce labor and travel costs by $14,000 per year. The second phase will reduce costs by $9,000 per year. If phase I savings occur from the start up to year 3 and phase II occurs in years 4 through 10, what is the equivalent annual worth of the upgraded system in years 1 though 10 at an interest rate of 8% per year? [round to the nearest ten dollars]