You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative X Y First cost, $ −45,000 −58,000 Maintenance cost, $/year −8,000 −4,000 Salvage value, $ 2,000 12,000 Life, years 5 5

Q: A professional photographer who specializes in wedding-related activities paid $47,500 for equipment…

A: Salvage value is the estimated resale value of an asset at the end of its useful life. It is…

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A: The annual worth is the net of the relative multitude of benefits and costs caused more than a…

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A: Given  Initial cost or first cost of the equipment P=$750,000 Operating cost =$240,000 per year…

Q: LEASE ANSWER AND SHOW SOLUTION A dam will have a first cost of P250,000,000, an annual maintenance…

A: First cost = $25000000 Annual maintenance cost = $1250000   Reconstruction cost = $5000000

Q: A member of congress wants to know the capitalized cost of maintaining a proposal national park. The…

A: * SOLUTION :-  * Given that,                 A= $ 2,250,000 and               i = 0.06. * P =…

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A: Given: MARR=10% per year

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A: Engineering economy pertains to the application of economic concepts in making financial decisions…

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A: Consider the above given that :  Equipment Current Proposed Original purchase price, $…

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A: Construction cost of gravel road (CCG) is $1,025,000. Its maintenance cost (MCG) is $335,000. Time…

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A: A building is adding 27,000 square feet to its existing structure. The costs include a construction…

Q: Lesco Chemical is considering two processes for making a cationic polymer. Process A has a first…

A: here we calculate the AOC of the both investment and choose the best one so here calculation as…

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A: Manufacturing expense (p) is $30,000 per year. Saving (s) is $4,202 per year. Interest rate is 8…

Q: For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year…

A: Incremental cash flow between B and A can be written as follows:

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A:

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A: Salvage value is the assessed book value of a resource after deterioration is finished, in light of…

Q: A company is offered a new computer program that is supposed to provide savings in costs. The cost…

A: Answer to the Question :- Given :- Cost Savings per annum = 100,000 New Equipment Cost = 200,000…

Q: Process A has a fixed cost of $190,000 per year and a variable cost of $58 per unit. For Process…

A: According to the given information, fixed cost of Process A is $190,000, variable cost of Process A…

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A: Suppose, installed cost is $2,500,000 and additional cost is $700,000. Annual software maintenance…

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A:

Q: The manager of a canned food processing plant must decide between two different labelling machines.…

A: Assuming that a firm is confronted with two totally unrelated tasks, the determination of one of…

Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…

A: Using the FV calculation, investors may make educated guesses about how much money they can expect…

Q: An oil refinery finds that it is necessary to treat the waste liquids from a new process before…

A: The measure that depicts uniform costs of estimated receipts and expenditure of the project life…

Q: ABC Technologies,Inc is evaluating two alternatives to produce its new plastic filament with…

A: The answer is given below

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A: Given; Original purchase price= $700000 Operating cost has averaged= $250000 Selling price of…

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A: Given the first year monthly instalment = 100000 per month Second-year monthly instalment = 150000…

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A: Annual value (AW) Analysis. Annual value (AW) Analysis is outlined because the equivalent uniform…

Q: The manager of a canned-food processing plant has two labeling machine options. On the basis of a…

A: Table 1 shows the cash flow.

Q: An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the…

A: The rate of return on investment is the method that is used to calculate the profitability ratio…

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A: The incremental rate of return can be calculated as follows.

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A: Capitalized Costs are considered those costs which are mostly long-term like fixed assets building…

Q: An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the…

A: The rate of return on investment can be calculated by the following formula :  R= Net ProfitCost of…

Q: The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water…

A: Annual worth can be calculated as follows:

Q: Three methods to dispose of nonhazardous waste have been developed—land application, fluidizedbed…

A: Figure 1 illustrates the annual worth of different projects with different interest rates.

Q: An engineer has been offered an investment opportunity that will require a cash outlay of $40,000…

A: Time period is indicated by ‘n’ and the interest rate is indicated by ‘I’. Present worth (PW) can be…

Q: Because of international competition, a company that manufactures high-speed submersible rotary…

A: Given; Company can invest= $80000 After one year:- FV=-80000(F/P,i,n)+20000+20000(F/A,i,n)…

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A: Annual Payment where F is accumulated sum of amount, n is number of years and that i is…

Q: A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage…

A:

Q: The MARR is 7% per year, capital investment is $118,864, annual expense is $30,127, annual revenue…

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A: The Break even point is the point of No profit no loss as at this point the firm is earning a zero…

Q: An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing…

A: Future value can be calculated as follows.

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A:

Q: ABC Beverage, LLC, purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The…

A: Brush Alternative EAUw = Initial Cost (A/P , i , n ) + AOC ( A/G , i , n ) + Salvage Value ( A/F , i…

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A: The net gain or loss of an investment over a given time period, stated as a percentage of the…

Q: The capitalized cost of $ 10,000 , every 5 years forever, starting now at an interest rate of 10%…

A: here we calculate the Capitalized Cost=EUAC(M) by using the formula which are as follow-

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A: given that, Capital Investment is $732,000 Savings due to a reduction in Gas consumption is…

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A: Cost: Cost indicates the measure of cash that an organization spends on the creation or creation of…

Q: A company uses a type of truck which costs P2M, with life of 3 years and a final salvage value of…

A: AC1 = Annual cost of old motortruck, and AC2 = Cost of new motortruck We know that, AC1 = (C1)i +…

Q: 2. Vista Land build shopping centers. The company plans to replace its air-conditioning unit ruth…

A: Given:  Original price= Php 700,000 Time (N) = 9 years Operating cost = Php 250,000 per year Sold at…