Pearson eText for Engineering Economy -- Instant Access (Pearson+)
17th Edition
ISBN: 9780137533138
Author: William Sullivan, Elin Wicks
Publisher: PEARSON+
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Question
Chapter 9, Problem 28SE
To determine
Calculate the economic life.
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Define replacement analysis
Briefly explain what is meant by the defender/ challenger concept.
The marginal costs of a defender for each of the final four years of service are $1,300, $1,600, $2,000 and $2,400, respectively. If the challenger's minimum EUAC is $2,055, the defender should be replaced at
the end of what year? (Note: Choose "0" if recommending to replace immediately)
○ A. 4
B. 1
○ C. 0
○ D. 2
○ E. 3
Chapter 9 Solutions
Pearson eText for Engineering Economy -- Instant Access (Pearson+)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - A city water and waste-water department has a...Ch. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Use the PW method to select the better of the...Ch. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27SECh. 9 - Prob. 28SECh. 9 - Prob. 29CSCh. 9 - Prob. 30CSCh. 9 - Prob. 31CSCh. 9 - Prob. 32FECh. 9 - Prob. 33FECh. 9 - Prob. 34FECh. 9 - Prob. 35FECh. 9 - Prob. 36FE
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- PLEASE WRITE YOUR SOLUTION ON A PAPER, THANK YOU A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight andInsurance charges amounted to P 18,000; customs’ broker’s fees and arrastre services, P 8,500;taxes, permits and other expenses, P 35,000. If the contractor estimates the life of the bulldozer tobe 10 years with a salvage value of P 20,000, determine the book value at the end of 8 years, a. using the Double Declining Balance Method. b. using the Declining Balance Method. c. using the Sinking Fund Method, i = 10% d. using the Sum of the Years Methodarrow_forwarddate period In Santa Barbara, the sales tax is 7.55%. What would be the final cost of a surfboard if it was being sold for $1,200 ?arrow_forwardWhat is One important consideration in comparing defender and challenger?arrow_forward
- 1-)According to replacement analysis, determine the number of years that the defender should be used before replacement. Defender Challenger Year, TC EUAC TC EUAC k 1 14,000 14,000 15,000 15,000 2 12,000 13,038 11,500 13,317 Scenario 3 13,000 13,027 14,000 13,528 1 4 14,000 13,243 14,500 13,743 5 15,500 13,627 16,000 14,128 Your answer: Use defender: 5 years than replace with the challenger Use defender: 3 years than replace with the challenger Use defender: 1 year than replace with the challenger Use defender: 0 year than replace with the challenger Use defender: 2 years than replace with the challenger Use defender: 4 years than replace with the challengerarrow_forward1) The following data represent a defender. Given this data, what is the correct replacement analysis technique to compare this asset against a challenger? How do we know? Year BTCF (Marginal cost) $ $ $ $ 1 3,800.00 2,700.00 2,200.00 4,100.00 4arrow_forwardA fire destroys Nancy's laptop that has a replacement value of $3,500 and an Actual cash value of $2000. Under which of the following homeowner policy, the insurer will pay for a maximum of $0 $2,000 $2,500 $3,500arrow_forward
- Please view the following video before answering this question. Video Solution: 04.05-PR002 Click here to access the TVM Factor Table Calculator Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,950,000, has annual operating and maintenance costs of $600,000, and requires overhauls every 5 years at a cost of $1,475,000. Design B is more sophisticated, including computer controls; it has an initial cost of $6,025,000, has annual operating and maintenance costs of $450,000, and requires overhauls every 10 years at a cost of $2,550,000. Part a Using a 5.0 %/year interest rate, determine the capitalized cost for each design. Design A: $ Design B: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±400.arrow_forward1-25 Zoe Garcia is the manager of a small office-support business that supplies copying, binding, and other services for local companies. Zoe must replace a worn-out copy machine that is used for black-and-white copying. Two machines are being considered, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $600, and there is a cost of $0.010 per page copied. Machine 2 has a monthly lease cost of $400, and there is a cost of $0.015 per page copied. Customers are charged $0.05 per page for copies. (a) What is the break-even point for each machine? (b) If Zoe expects to make 10,000 copies per month, what would be the cost for each machine?arrow_forward1-25 Zoe Garcia is the manager of a small office-support business that supplies copying, binding, and other services for local companies. Zoe must replace a worn-out copy machine that is used for black-and-white copying. Two machines are being considered, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $600, and there is a cost of $0.010 per page copied. Machine 2 has a monthly lease cost of $400, and there is a cost of $0.015 per page copied. Customers are charged $0.05 per page for copies. (c) If Zoe expects to make 30,000 copies per month, what would be the cost for each machine? (d) At what volume (the number of copies) would the two machines have the same monthly cost? What would the total revenue be for this number of copies?arrow_forward
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