answer and discuss pls A company is consider two types of equipment for its plant.Турe AТуре вFirst CostAnnual Opperating CostAnnual Labor Cost30000020000032000240005000032000Insurance and Property TaxesPayroll TaxesEstimated LifeInterest on CashSalvage Value4%4%5%5%101015%15%0%0%What is the annual cost of the cheaper method?

Given: Type A Type B First cost 300000 200000 Annual Operating cost 32000 24000 Annual…

Турe А Туре в First Cost Annual Opperating Cost Annual Labor Cost Insurance and Property Taxes Payroll Taxes Estimated Life Interest on Cash Salvage Value 200000 24000 32000 300000 32000 50000 4% 4% 5% 5% 10 10 15% 15% 0% 0% What is the annual cost of the cheaper method?

Турe А Туре в First Cost Annual Opperating Cost Annual Labor Cost Insurance and Property Taxes Payroll Taxes Estimated Life Interest on Cash Salvage Value 200000 24000 32000 300000 32000 50000 4% 4% 5% 5% 10 10 15% 15% 0% 0% What is the annual cost of the cheaper method?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Question S The AW method is to be used to select the better alternative of the two machines listed…

A: Here we calculate the annual worth of the both machines and choose the best option , so calculation…

Q: QUESTION 3 For the below ME alternatives, which machine should be selected based on the PW analysis.…

A: Given Information for Machine A First Cost = 18,756 Annual Cost = 9487 Salvage Value = 4,000 Life =…

Q: need answer in 15 mins sorry for rushing :(

A: Given:

Q: A company wants to automize its production line. Two main technology shortlisted after several…

A: Here we calculate the Present worth of Technology A by using the given information , so the…

Q: 32. A factory has production capacity of P12,000 units per month with an efficiency of 80% Fixed…

A: When money produced from a commercial activity exceeds the expenditures, costs, and taxes involved…

Q: quipment (defender) or replace them with the new productive equi hallenger). The details of the cost…

A: *Answer:

Q: Given the two machines' data Machine A Machine B First Cost Salvage value P8.000.00 P14,000.00…

A: For finding out the Equivalent annual cost we take following steps : => First we formulate cash…

Q: Andrew is considering buyng a new taming tractor for ha tarm. He has a choice between a…

A: Given: MARR=8% Study period=10 years John: First Cost=$150000, Life=10 years, Annual expense=$3000…

Q: cost and income particular robot A robot B robot c first cost 55000 58000 53000 operating and…

A: In order to find the present worth, we have recorded all the yearly cash inflows and outflows on the…

Q: Karim Inc. calculated the annual cost öf öwning an EUAC Annual EUAC Replacement Capital Repair…

A: The cost of owning and operating as well as maintaining an asset throughout the length of its entire…

Q: there are three machines in the mechanicle angineering lab A ,B , and C and need to be evaluted…

A: Given: Machine A The first cost of = $4,500 An annual operating cost of = $900 Salvage value of =…

Q: SOLVE IT USING 1.) Present Worth Cost Method2.) Equivalent Uniform Annual Cost Method

A: Given: Machine A: First Cost=P 12000 Machine B: First Cost=P 17000

Q: 3. A cement kiln with production capacity of 130 tons/day (24 hours) of clinker has its burning zone…

A: Given: The production capacity of a cement kiln = 130 tons/day Periodical replacement of magnesite…

Q: .A company is evaluating fottowing 4 mutuatly exclustve all projects ha will cycle of 4 year Use ROR…

A: The ROR(Rate of Return) method is also known as the annual rate of return. The rate of return is…

Q: A material handling system was purchased 3 years ago for $120,000. Two years ago it required…

Q: Problem 5) The following annual costs are associated with three new extruder machines being…

A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…

Q: QUESTION 2 The AW method is to be used to select the better alternative of the two machines listed…

A: Given : Machine S- First Cost=$497732 Annual operating Cost=$50000 Salvage value=$30000 Life=5 years

Q: For the below ME alternatives , which machine should be selected based on the PW analysis. MARR=10%.…

A: The concept that depicts that the value of money today is worth more than the value of money in the…

Q: am from sta. 0+00 to sta. 50+00 is plotted as bel I distance is 1000' The earth excavation cost is…

A: *Answer:

Q: Choose from the two machines which is more economical. Machine A Machine B First Cost Salvage value…

A: Annual cost of machine A = 3000 + 1200 + (8000 x 3%) = 4440Present value of machine A= - 8000 -…

Q: Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron…

A: Here we calculate the Present worth of two alternatives and choose the correct option so the…

Q: G IVEN: F IXED COST - $ 14,000 , 000.00 VARIABLE COST - P 8750 00/ UNIT SE LLING PRICE 15,000. 00/UN…

A: Given Fixed cost = 14000000 Variable cost = 8750 per unit Selling price = 15000 per unit

Q: 1) If money is worth 15%, what is the Total Annual Cost of Machine A (using Annual Worth Method)?

A: Machine A Machine B First cost 11,002 18,000 Annual operating cost 3,561 3,100 Salvage value…

Q: For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10%.…

A: here we calculate the NPW of the all three Machine and choose the best machine so the calculation of…

Q: First Cost $80,000 $120,000 Annual property 3,000 5,000 Annual income 11,000 16,000 Life of…

A: The economic benefit or loss is the difference between the income received from the sale of the…

Q: Part A.) The costs associated with a small X-ray inspection system are $50,000 now and $20,000 per…

A: Given Information X-ray machine cost = $50,000 Per year cost =$20,000 Salvage = $6,000/ 3years…

Q: An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000…

A: Given: An asset has a first cost of = $12,000 An annual operating cost of = $3,500 A salvage value…

Q: 14. Two projects are under consideration. Year A B 0 ($3,400) ($4,500) 1 $2,750 $1,000 2 $2,750…

A: Answer; Year Cash Flow (A)…

Q: In comparing the machines on a present worth basis, the present worth of machine Q is closest to:a.…

A: The initial cost of machine Q = -66000 Annual cost = -15000 Salvage value = 23000 Life of machine =…

Q: Compare the machines shown below on the basis of their capitalized cost. Use I =10% per year.…

A: In this question we have:- machine A has a initial cost of $20,000 and machine B has a initial cost…

Q: Machine X Machine Y Market Value, $ 93,000 -40,000 for year 1,increasing by 2000 p year thereafter.…

A: Solution given below,

Q: Calculate the average cost (LCOE) of power generated by a nuclear plant which costs $8000/kw and has…

Q: The TopCar Industries manufactures and sells car components. The current annual sales volume is…

Q: The minimum cost life of a new replacement machine is 6 years with a minimum equivalent annual cost…

A: 1 Year Annual Cost is $6000 Hence, cost of 6 years = 6×6000 =…

Q: fabrication company engaged in production with a capacity of 150, 000 pieces per year. But, it is…

A: A company's break-even point determines when it, or one of its products, will become profitable. If…

Q: Gehaz Zayed City is advancing a project for the construction of a new Service Cluster System in the…

A: The B/C refers to the ratio that is relied upon as a fundamental analysis method for public sector…

Q: 13. Kruber company located Tennessee considering two different makes of a blow molding machine for…

A: Given: Machine X Machine Y Initial Cost $150K $275K Annual Operating Cost 55K 60K…

Q: First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ Machine R -250,000…

A: Annual Worth (AW) Analysis is defined as the equivalent uniform annual worth of all estimated…

Q: Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate anneual…

A: Since you have posted multiple questions, we will answer the first question you. If you want any…

Q: Amanitaching engineered to compare two equcment and use the most economic one using analysis The…

A: Benefit Cost Ratio refers to the ratio of the present value of all the benefits and the present…

Q: 3. It is proposed to place a cable on an existing pole line along the shore of a lake to connect to…

A: Land Route: First cost of cable is calculated as follows. Annual maintenance cost is calculated as…

Q: nly that the project has: r project life with an initial cost of $400.000.

A: The given values are cost= 400,000time= 8

Q: two following alternatives should be chosen using the following methods? DRAI Pamper pipes P 75,000…

A: *Answer:

Q: 3. It is proposed to place a cable on an existing pole line along the shore of a lake to connect to…

A: Land Route: First cost of cable is calculated as follows. First cost of cable=40,000×10=400,000…

Q: Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas…

A: ANSWER Estimate life is same for all alternatives which is 20 years. Find the PW using the rule PW…

Q: please help

Q: ning plant. If the canning company uses an in rate of 12%, which is the best alternative? Use! to…

A: NPW can be calculated by using the following formula NPW = Initial Investment - Net Benefit x…

Q: Automobile traffic creates two types of operating costs thatare not created by rail traffic. What…

A: Operating costs are the costs associated with the normal day-to-day running of a business. It…

Q: Evaluate to total present worth of all the cash-flow of machine ABC for an interest rate of 10% per…

A: Investment Cost 18000 Annual Expences 250 Overhead Cost 7th Year 500 Overhead Cost 14th Year…

Q: Machine A Machine B First cost, $ 29,000 37,000 Annual operating cost, $ Annual maintenance cost, $…

A: Equivalent annual cost (EAC) is a cost metric that can be used for a variety of things, including…

Question

answer and discuss pls

A company is consider two types of equipment for its plant.
Турe A
Туре в
First Cost
Annual Opperating Cost
Annual Labor Cost
300000
200000
32000
24000
50000
32000
Insurance and Property Taxes
Payroll Taxes
Estimated Life
Interest on Cash
Salvage Value
4%
4%
5%
5%
10
10
15%
15%
0%
0%
What is the annual cost of the cheaper method?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Property Rights, Bargaining And The Coase Theorem

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The Economic Service Life ( ESL ) for an the number of years at which the highest cost occurs . O. True O. False The amount expended in the past and be recovered is O. Opportunity Cost O. Sunk Cost O. First Cost O. M & O Cost The value at the end of the asset's expec O. salvage value O. purchase value O. annual value O. future value
Equipment Depreciation A new piece of equipment cost acompany $15,000. Each year, for tax purposes, the companydepreciates the value by 15%. What value should thecompany give the equipment after 5 years?
truck production purchased a truck of $85000. the estimated life span is 5years with salvage vlaue of $10000. compute depreciation using 100% bonus depreciation
A) Mary O’Leary’s company ships fine wool garments from CountyCork, Ireland. Five years ago she purchased some new automatedpacking equipment having a first cost of $125,000. The annual costsfor operating, maintenance, and insurance, as well as market valuedata for each year of the equipment’s 10-year useful life are asfollows. B) Now Mary is looking at the remaining 5 years of her investment inthis equipment. What is the marginal cost for each of the remaining5 years? When, if at all, should Mary replace this packing equipmentwith a new asset that has a minimum EUAC of $110,000?
A company is going to buy a new machine for manufacturing its products. Five machines are available. Data is as follows: A B C D E First Cost 25,200 31,800 38,500 46,600 52,500 Power per year 1,300 1,450 2,600 2,300 2,300 Labor per year 10,500 9,200 6,200 3,900 2,350 Maintenance per year 2,800 1,800 1,400 1,300 850 Taxes per year 3% 3% 3% 3% 3% Life, years 5 5 5 5 5 If money is worth 15% before taxes to the company, which machine should be chosen? Use Annual Cost Method
Subject: Engineerings Economics Topics:1. Declining Balance Method (DBM)2. Double Declining Balance Method(DDBM)3. SYD4. Service Output Method5. Uniform Arithmetic Gradient( one problem) Please help me to solve this in step by step manner. Make sure to analyze the question well.BOX your final answer Question: An office equipment cost P14,000, has a useful life of 12 years and a salvage value of P1,000. Using sum of years digit method, find the value of the depreciation during the first year.
If I want to invest my money. how long will it take $6000 to earn $220 interest (Simple) at 3%? Q 11 ABC Telecom wants to launch a new product. it is observed that the fixed cost of the new product is $28.500/year and the variable cost per unit is $200. The revenue function for the sale of D unit is SOD -SD What is the maximum profit or loss of the company?
Felde Company had $150,000 of net income in 2011 when the s4elling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000.Management expects per unit data and total fixed costs to remain the same in 2012. The president of Felde Company is under pressure from stockholders to increase netincome by $60,000 in 2012. Instructions (a) Compute the number of units sold in 2011. (b) Compute the number of units that would have to be sold in 2012 to reach the stockholders’ desired profit level.
what do you think about NFTs in the market, is there and need for them? And what are some concerns regarding NFT in the public are the ethical correct?
Ederly Quarry sells a wide variety of cut limestone for residential and commercial building construction. A recent quarry expansion cost $2.9 million and added an estimated 100,000 tons of reserves. (a) Estimate the cost depletion allowance for the next 5 years, using the projections made by the owner, John Ederly. (b) Will the cost depletion in any of the 5 years be limited by law? Why or why not? Year 1 2 3 4 5 Volume, 1000 tons 10 9 15 15 18 Price, $ per ton 75 70 70 75 85
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: +400
A firm manufactures padded shipping bags. A cardboard cartonshould contain 100 bags, but machine operators fill the cardboardcartons by eye, so a carton may contain anywhere from 98 to 123bags (average = 105.5 bags). Each padded bag costs $0.03.Management realizes that they are giving away of their outputby overfilling the cartons. One solution is to automate the filling ofshipping cartons. This should reduce the average quantity of bagsper carton to 100.3, with almost no cartons containing fewer than100 bags. The equipment would cost $18,600 and straight-line depreciationwith a 10-year depreciable life and a $3600 salvage value would beused. The equipment costs $16,000 annually to operate. 200,000cartons will be filled each year. This large profitable corporation hasa 28% combined federal-plus-state incremental tax rate. Assume a10-year study period for the analysis and an after-tax MARR of15%.Compute:(a) The after-tax present worth(b) The after-tax internal rate of return(c) The…