ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Chapter 13, Problem 14P
a)
To determine
To find: Economic life of machine with lowest equivalent uniform annual cost.
b)
To determine
To find: Economic life of machine with lowest equivalent uniform annual cost after overhaul of 8000 Dollars after year 5.
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VML Industries has need of specialized yarn manufacturingequipment for operations over the next 3 years. The firm could buythe machinery for $95,000 and depreciate it using MACRS. Annualmaintenance would be $7500, and it would have a salvage value of$25,000 after 3 years. Another alternative would be to lease thesame machine for $45,000 per year on an “all costs” inclusive lease(maintenance costs included in lease payment). These leasepayments are due at the beginning of each year. VML Industriesuses an after-tax MARR of 18% and a combined tax rate of 28%. Doan after-tax present worth analysis to determine which option ispreferred.
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?
A diamond mining company has just purchased a new crystal extraction machine that cost $5000, and has an estimated salvage value of $1000, at the end of its 8 yeaer useful life, what is its book value in year 5 using the double declining balance methiod?
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Chapter 13 Solutions
ENGR.ECONOMIC ANALYSIS
Ch. 13 - Prob. 1QTCCh. 13 - Prob. 2QTCCh. 13 - Prob. 3QTCCh. 13 - Prob. 4QTCCh. 13 - Prob. 5QTCCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - Prob. 4PCh. 13 - Prob. 5P
Ch. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Prob. 14PCh. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Prob. 27PCh. 13 - Prob. 28PCh. 13 - Prob. 29PCh. 13 - Prob. 30PCh. 13 - Prob. 31PCh. 13 - Prob. 32PCh. 13 - Prob. 33PCh. 13 - Prob. 34PCh. 13 - Prob. 35PCh. 13 - Prob. 36PCh. 13 - Prob. 37PCh. 13 - Prob. 38PCh. 13 - Prob. 39PCh. 13 - Prob. 40PCh. 13 - Prob. 41PCh. 13 - Prob. 42PCh. 13 - Prob. 43PCh. 13 - Prob. 44PCh. 13 - Prob. 45PCh. 13 - Prob. 46PCh. 13 - Prob. 47PCh. 13 - Prob. 48PCh. 13 - Prob. 49PCh. 13 - Prob. 50PCh. 13 - Prob. 51PCh. 13 - Prob. 52PCh. 13 - Prob. 53PCh. 13 - Prob. 54PCh. 13 - Prob. 55PCh. 13 - Prob. 56P
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