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- A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $76,000, an annual M&O cost of $31,000, and $42,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $121,000 per year. The company’s MARR is 46% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. The incremental ROR is ____ %.A government-required truth-in-lending documentshowed that the APR was 21% and the APY was22.71%. Determine the compounding frequency atwhich the two rates are equivalent.Q13. A small construction company has $190,000 set aside in a capital improvement fund to purchase new equipment. If $18,000 is invested at 16%, $34,000 at 21%, and the remaining $138,000 at 19% per year, what is the overall rate of return on the entire $190,000? The overall rate of return on the entire $190,000 is % per year.
- Ellis Equipment sold a used Massey Ferguson tractor for $55,000 to a South Kansas farmer 10 years ago. (a) What is the uniform net cash flow that the farmer had to receive each year to realize payback and a return of 5% per year on his investment over a period of 3 years? 5 years? 8 years? All 10 years? (b) If the net cash flow was actually $6000 per year, what is the amount the farmer should have paid for the tractor to realize payback plus the 5% per year return over these 10 years?An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the 10-year period. The rate of return on the investment was closest to: (a) 10.6% per year (b) 14.2% per year (c) 16.4% per year (d) 18.6% per yearA small minority firm TheGlobalTrans invested $100,000 for an intersection signal innovation project. At an interest rate of 15% per year, compounded bimonthly, what is the bimonthly income required to recover the investment in 2 years.
- An engineer borrowed P1,000,000 to start a business with an interest rate of 13% per year. The term of the loan is 5 years and payment will start 3 years from now. Determine the equal yearly payment. show solution/formula.Life Oil Sdn Bhd (LOSB) is a small oil palm plantation company, it was incorporated in year 2010 and it purhcased a piece of agricultural land in Sarawak at the cost of RM9 million in the same year. LOSB then spent RM8,000 for the preparation of the land including tree felling, drains and road constuctions, seedling, etc. Thereafter, RM6,000 per year was spent for the upkeep and ferterlizing of the estate. No harvesting could be carried out during the first three (3) years, therefore, no income was generated during that period. starting from the fourth year, a harvesting cost of RM2,500 was incurred every year to harvest the fresh fruit bunch of the oil palm. In the year 2012, LOSB consturcted an office building and living quarters for its workers. In the year 2021, all the doors in the office building and the living quarters have been damaged due to wear and tear, LOSB replaced all of them using a sturdier material so that less replacement will be needed in the future. In the year…An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $203,000 to buy and $85,000 per year to operate. Belts will be replaced one time per year at a cost of $5500. Centrifuges (Cent) will cost $396,000 to buy and $119,000 per year to operate, but because the centrifuge will produce a thicker “cake”, the sludge hauling cost to the monofill will be $37,000 per year less than for the belt presses. The useful lives are 5 and 10 years for alternatives BFP and Cent, respectively, and the salvage values are assumed to be 10% of the first cost of each process whenever they are closed down or replaced. Use PW evaluation to select the more economical process at an interest rate of 6% per year over (a) the LCM of lives, and (b) a study period of 8 years. Are the decisions the same?