ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 13, Problem 43P
To determine
Whether all the old machines should be replaced with 6 new machines or three additional new machines should be bought keeping old machines intact on the basis of net cash flow analysis.
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A machine purchased a year ago for $85,000 costs more to operate than anticipated. At the time of the purchase, it was expected to be used for 10 years with annual maintenance costs of $22,000 and a salvage value of $10,000. However, last year, it incurred a cost $38,000, which is expected to escalate to $39,300 this year and increase by $1,300 each year thereafter. The market value is now estimated to be $81,000–$10,000k, where k is the number of years since the machine was purchased. It is now estimated that the machine will be useful for a maximum of 6 more years. A replacement study is to be performed. Determine the values of P, n, AOC for year 6 and S of this defender.
The value of P is $ _______ .
The value of n is_______ years.
The AOC for year 6 is______ .
The value of S is $______ .
A machine cost P60,000 and the salvage value is 10,000 after 10 years. Find the book value after 7 years Double Declining Balance Method.
Wanting to acquire a new generator set for the plant to replace the unit that they currently use. The new set has an amount of P150,000 which can last up to 5 years and no salvage value. It has production cost of P175.000. The present generator set they have still has a life of 5 remaining years out of the 10 years of its useful life with a salvage value of P12,000. Its current value can be computed by Straight Line Method. Its original cost is P130,000 that has a production cost of P180,000. If money is worth 10%, what would you suggest?
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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