The concept of present worth allows engineers to convert costs and benefits to an equivalent value at a defined point in time Select one: True False
Q: 14. An initial investment for a wholesale lumber supply company was $275,000. The income is $60,000…
A: Initial investment = $275,000 Income per year = $60,000 Expenses per year = $15,500 MARR= 10% We…
Q: Burns City may build a garbage incinerator on the outskirts of town. Environmental impact statements…
A: Given information: Cost of money = 5% Environmental impact statements and safety planning/inspection…
Q: Southeastern Pennsylvania Transportation Authority (SEPTA) has just opened a new route connecting…
A: Break-even point: The break-even point is when total cost and total income are equal, meaning that…
Q: Complete each problem in excel. Submit your excel worksheet in EXCEL format so I can see how you…
A: Given The first cost of the equipment =$620,000 The estimated useful life of the equipment =11…
Q: Which of the following is not a method typically used for supplementary analysis of engineering…
A: In the case of a supplementary analysis of the engineering economy problem, there are several…
Q: 05. Mr. A, an elderly descendant from the Laksam Nabab family, while in need of cash fund handed…
A: Hello Mr. A, I understand your situation as you had set the hold price for the antique clock at a…
Q: being evaluated: Method A. Dig a ditch. The first cost would be $60,000, and $25,000 of redigging…
A: this question belongs to the present value so the definition is: Present value (PV) is the current…
Q: The purchasing price of the second-hand bulldozer is $150,000. It will have 8 years service life…
A: Purchase price of bulldozer = $150000 Life of bulldozer = 8 years Salvage value = $10000 First-year…
Q: A large city in the mid-West needs to acquire a street-cleaning machine to keep its roads looking…
A: A business’s break-even point is that the stage at which revenues equal costs. Once you establish…
Q: Which of the following power plants is better investment, assuming 8% interest on the sinking fund…
A: Given , Two Power Plants: Coal Plant and Fuel-oil plant 8% Interest on sinking fund No Salvage…
Q: A construction company intends to build a fly-over that costs P3,000,000. The annual maintenance is…
A: Total cost is the cost that is incurred in the production of goods and services. The total cost is…
Q: • The recovery period of an asset in petroleum refineries plant is 16 years using the straight-line…
A: Recovery period for asset of petroleum refineries is 3 to 5 years.
Q: $250,000 is invested in equipment having a salvage value equal to $250,000(0.80n) after n years of…
A:
Q: The present worth of all future profits that are to be received through ownership of a property is…
A: Real estate valuation is challenging because each property has its own set of characteristics, such…
Q: A large city in the mid-West needs to acquire a street-cleaning machine to keep its roads looking…
A: From the 1st two parts of the question, we know: Life years, N = 5 years, MARR = 12%, labor cost,…
Q: What is the annual worth approach? How is it useful?
A: The annual worth approach can be understood as the equal uniform annual worth of all estimated…
Q: Hampton Industries had $46,000 in cash at year-end 2018 and $15,000 in cash at year-end 2019. The…
A: Cash flow refers to the quantity of cash or cash equivalents received or disbursed by the company in…
Q: Compare the defender and challenger based on the cash-flow?
A: The important comparison for defender and challenger analysis is Equivalent uniform annual cost.…
Q: A small manufacturing company is considering the addition of one or more of four new product lines.…
A: The formula for calculating present worth is given below. P=AP/A, i, n..... (1) By using equation 1,…
Q: Advanced Modular Technology (AMT) makes energy cleaner, safer, more secure and more efficient. It…
A: find the answer below
Q: Required information A process for producing the mosquito repellant Deet has an initial investment…
A: The payback period is at 0% and 12% interest rate is calculated as follows.
Q: QUESTION: To improve package tracking at a UPS transfer facility, conveyor equipment was upgraded…
A: Annual Worth is a widely used method to compare alternatives .
Q: A computer engineer is considering the purchase of a laptop whose operating characteristics are…
A: Fundamentally, engineering economics entails defining, estimating, and evaluating economic…
Q: Two types of robots (Cartesian and Articulated) with the following estimates are under consideration…
A: The annual worth of robots Cartesian and Articulated is shown below.
Q: A company is evaluating four appliances to choose the best from an economic point of view. The…
A: Given MARR = 15 % time of each appliance = 10 years
Q: A business industry has a new product whose sales are expected to be 1.2, 3.5, 7, 5, 3 million units…
A: A business is considered profitable when the net present worth is positive, that is, when the…
Q: A drug store is looking into the possibility of installing a 24/7-automated refill system to…
A: Annual worth = [Revenue each year - Cost each year] - [Annual equivalent capital recovery]
Q: Mother E, a business selling specialized helmet, has a carrying cost of P70 per unit per order. In…
A: This question is related to the topic-Inventory Management and This topic falls under the operations…
Q: Required information Problem 05.030 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS An electric…
A: i = 13% The analysis will be for 8 yrs.
Q: Car A costs $800 more than Car B, but it consumes 0.035 gallons/mile versus 0.06 gallons/mile for…
A: Car A costs $800 more than Car B, but it consumes 0.035 gallons/mile versus 0.06 gallons/mile for…
Q: Car A initially costs 500 more than car B. but it consumes 0.04 gallon/mile versus 0.05 gallon/mile…
A: here we calculate the miles of use per year does car A become preferable to car B as follows
Q: Using AW analysis. Texas Popcorn Corporation is planning to fully automate it process. The company…
A: To solve for above problem we take repeatability assumption , which implies the repurchase of the…
Q: A plant erected to manufactured socks has a first cost of P10, 000,000 with an estimated Salvage…
A:
Q: The travel cost method is capable of estimating both use and non-use values for environmental…
A: When talking about travel cost method, it is widely used to analyze enviornmental quality and it…
Q: Incremental ROR and B/C methods require the LCM of the two alternatives being compared. Select one:…
A: To analyze an investment in a market, there are various methods to make an analysis such that…
Q: A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with…
A: The measure that depicts the uniform worth of receipts and expenditures being estimated during the…
Q: Determine the process to compare alternatives on an equal basis and select the alternative that is…
A: Decision making refers to the process of choosing a course of action, a commodity, service, or any…
Q: Two incinerators are being considered by a waste management company. Design A has an initial cost of…
A: In the case of design "A": Initial cost of design "A" = $2500000 Annual operating and maintenance…
Q: The Logan Well Services Group is considering two sites for storage and recovery of reclaimed water.…
A: The benefit-cost ratio (BCR) is a sign represents the connection between the relative costs and…
Q: If Sales < B.E.P, the MOS% is still good and a Project may be profitable True O
A: If sales is lower than breakeven point, the project does not recover all of its fixed costs and…
Q: Describe the process of determining the equivalent annual worth of the project and the unit profit…
A: Present value: The term present value refers to the current value of all future cash inflow or cash…
Q: Define the term Net Present Worth in the present worth analysis?
A: Net present worth (NPW) or net present value (NPV) is defined as present worth of the total cash…
Q: TEI incorporated is considering the use of concrete electric pole in the expansion of its power…
A: The life of each option is different so either we can use the AW method or repeat method in PW
Q: When dealing with infinite life time, the salvage value would be disregarded? True or false?
A: Salvage value is the value of an asset that is realized when it is sold at the end of the asset's…
Q: Initial Cost: ($300,000) The Study Period: 15 years Salvage (Market) Value of the Project: 12% of…
A: Given: Cost = $300,000 Total years = 15 Salvage value = 12% of cost Operating cost in first year =…
Q: There is a continuing requirement for stand by electrical power at a public utility service…
A: (Q) There is a continuing requirement for stand by electrical power at a public utility service…
Q: YOUR QUESTION IS: 2. Three mutually exclusive design alternatives are being considered. The…
A: GIVEN Three mutually exclusive design alternatives are being considered. The estimated sales and…
Q: A textile processing company is evaluating whether it should retain the current bleaching process…
A: Defender: Market value (FC) is $25,000. Annual operating cost (AC) is $190,000. Salvage value (SV)…
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- A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1.If at the end of the sixth year, instead, the investment is sold for $1000, calculate the PW, FW and AW for a BTCF MARR of 12%. Is the investment a good one if used this way? Why?Please show both and irr using trial and error method only pls. Thanks.What is the numeric value of the present worth of the original project (i.e., no changes)? a. −10 b. 20 c. 1,000 d. Cannot be determined from the information given
- You need to determine whether a project is profitable or not in a long run. Based on the data given, which of theseprojects will be profitable according to engineering economy methods?a. θ = 3 yrs., Net Value: 0b. Accumulated (without interest) net values of the revenues, expenses and investments after 5 years is +300.c. Accumulated (without interest) net values of the revenues, expenses and investments after 4 years is +100.d. θ = 6 yrs., Net Value: +400Give typed explanation only The difference between the present worth of the cash flows is referred to as the net future worth (NFW) True Or False?The Cornballer, invented by George Bluth in the mid-1970s, is a device used to make cornballs. Itsold for $29.95. Suppose that 10,000 Cornballers were sold in 1981; 11,000 in 1982; and salesincreasing by 10% each year until it was last sold in 1990 (when it was made illegal). Assume aninterest rate of 12% per year. Assume sales were made at EOY. What was the worth of these cashflows in 1980? Show in standard factor notation and show the cash flow diagrams.
- Chambers Company has just gathered estimates forconducting a break-even analysis for a new product.Variable costs are $7 a unit. The additional plant willcost $48,000. The new product will be charged $18,000a year for its share of general overhead. Advertisingexpenditures will be $80,000, and $55,000 will be spenton distribution. If the product sells for $12, what is thebreak even point in units? What is the break even pointin dollar sales volume?An investment of P 270,000 can be made in a project that will produce a uniform annual revenue of P 185,400 for 5 yrs and then have a salvage value of 10% of the investment. Out of pocket costs for operation and maintenance will be P 81,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 25% before income taxes. Is this a desirable investment?The ore of a gold mine in the province contains, on average, 0.5 ounce of gold per ton. Method A ofprocessing costs 150Php/ton and recovers 93% of the gold, while Method B costs only 120Php/tonand recovers 81% of the gold. If gold can be sold at 1,200/ounce, which method is better and by howmuch?a. Method A, by 43Phpb. Method A, by 42Phpc. Method B, by 42Phpd. Method B, by 43Php
- Pleasee solve with clear explantion so I can understand, engineering econa young engineer wishes to become a millionaire by the time he is 60 years old. He belives that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sume of money to his investment program each year, beginning on his 20th birthday and continuing through his 59th birthday. How much money must the enigneer set aside in this project each year? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.It is the first of October, and you are developing cost estimates for creating an engineering consulting business with a small group of friends. Liability insurance beginning January 1 will cost $475 per month, payable at the beginning of each month. What is the PW of this insurance for the first year as of this date? The firm’s MARR is a 12% nominal annuity rate. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.