Server Farms units in $M; OPEX increases by 4% per year after yr 1 Vacaciones Borrego Маcondo 1st Cost 32 70 75 Yr. 1 OPEX 23 22 33 Salvage 10 15 28 Useful Life 12 Q's: 1. Provide a Graph of NPW of all options for the MARR vs Server Farms [range 1% to 15%] 2. What is the best option for a server farm at a rate of 10%? _ [insert name] 3. What is the best option for a server farm at a rate of 7%? _ [insert name] 4)

Server Farms units in $M; OPEX increases by 4% per year after yr 1 Vacaciones Borrego Маcondo 1st Cost 32 70 75 Yr. 1 OPEX 23 22 33 Salvage 10 15 28 Useful Life 12 Q's: 1. Provide a Graph of NPW of all options for the MARR vs Server Farms [range 1% to 15%] 2. What is the best option for a server farm at a rate of 10%? _ [insert name] 3. What is the best option for a server farm at a rate of 7%? _ [insert name] 4)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mustang Auto Parts, Inc. is considering one oftwo forklift trucks for its assembly plant.• Truck A costs $15,000 and requires $3,000 annually in operating expenses. It will have a $5,000salvage value at the end of its three-year servicelife.• Truck B costs $20,000, but requires only $2,000annually in operating expenses; its service life isfour years, at which time its expected salvage valuewill be $8,000.The firm’s MARR is 12%. Assuming that the trucksare needed for 12 years and that no significantchanges are expected in the future price and functional capacity of each truck, select the most economical truck on the basis of AE analysis.
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NO tables, please, only formulas correct answers are: (i) n=12×5=60(months) --> ?0 = £16,775 (ii) L12 = £15,293.38 (iii) a) I13 = 98.4 and C13 = 161.6 --> L13 = L12 − C13 = 15,131.79 b) I14 = 97.36 and C14 = 167.64
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uppose that you purchased a HVAC system five years ago for $75, 000. The O&Mcosts are $15, 000 this year and are expected to increase by $1, 000 each year for the next five yearsthen remain the same for the following years.The current salvage value of the system is $15, 000; salvage value after one year is estimated tobe $12, 000; after two years, $11, 000; after three years, $10, 000; after four years, $9, 000; and so on.A new industrial HVAC system is available for purchase at a price of $95, 000, including instal-lation. The market value of the new system will decrease at a rate of 15% each year. The O&Mcosts are expected to be $1, 000 in the first year, and will increase at a rate of 20% each year. Themaximum service life of the new system is 10 years. Assume that your company uses an interestrate of 10% for all project evaluations.(a) Find the remaining economic life of the currently owned asset.(b) What is the economic service life of the new system?(c) Use the…