Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 9, Problem 30CS
To determine
Calculate the annual worth.
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A machine that cost $120,000 3 years ago can be sold now for $51,500. Its market value is expected to be $40,000 and $20,000 1
year and 2 years from now, respectively. Its operating cost was $18,000 for the first 3 years of its life, but the M&O cost is expected to
be $23,000 for the next 2 years. A new improved machine that can be purchased for $135,500 will have an economic life of 5 years,
and an operating cost of $9,000 per year, and a salvage value of $32,000 whenever it is replaced. At an interest rate of 10% per year,
determine if the presently owned machine should be replaced now, 1 year from now, or 2 years from now.
The annual worth of the existing machine one year from now is $- 50500 O. the annual worth of the existing machine two years
from now is $- 30,500 . and the annual worth of the new machine is $-112,500
The presently owned machine should be replaced now
13
A machine that cost $120,000 3 years ago can be sold now for $52,750. Its market value is expected to be $40,000 and $20,000 1
year and 2 years from now, respectively. Its operating cost was $18,000 for the first 3 years of its life, but the M&O cost is expected to
be $23,000 for the next 2 years. A new improved machine that can be purchased for $136,750 will have an economic life of 5 years,
and an operating cost of $9,000 per year, and a salvage value of $32,000 whenever it is replaced. At an interest rate of 10% per year,
determine if the presently owned machine should be replaced now, 1 year from now, or 2 years from now.
The annual worth of the existing machine one year from now is $-
now is $-
], and the annual worth of the new machine is $-
The presently owned machine should be replaced (Click to select)
the annual worth of the existing machine two years from
Hydrochloric acid, which fumes at room temperatures, creates a very corrosive work environment. A mixing machine
working in this environment is deteriorating fast and can be used for only 1 more year, at which time it will be scrapped.
It was purchased 3 years ago for $88, 000 and its operating cost for the next year is expected to be $67,000. A more
corrosion-resistant challenger will cost $226,000 with an operating cost of $54,000 per year. It is expected to have a $
60,000 salvage value after its 10-year ESL. At an interest rate of 15% per year, what minimum trade - in value will
make the challenger economically attractive? On equating the AW values of the defender and the challenger, to
calculate the minimum trade - in value of the challenger, the spreadsheet tool that should be used is GOAL SEEK. The
minimum trade - in value that will make the challenger economically attractive will be $54, 703.96. Give correct answer
Hydrochloric acid, which fumes at room temperatures, creates a…
Chapter 9 Solutions
Engineering Economy, Student Value Edition (17th Edition)
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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- A replacement analysis is most objectively conducted from the viewpoint of:a. an outsider.b. a consultant.c. a non-owner.d. any of the above.arrow_forwardHydrochloric acid, which fumes at room temperatures, creates a very corrosive work environment. A mixing machine working in this environment is deteriorating fast and can be used for only 1 more year, at which time it will be scrapped. It was purchased 3 years ago for $88,000 and its operating cost for the next year is expected to be $67,000. A more corrosion-resistant challenger will cost $226,000 with an operating cost of $54,000 per year. It is expected to have a $60,000 salvage value after its 10-year ESL. At an interest rate of 15% per year, what minimum trade-in value will make the challenger economically attractive? On equating the AW values of the defender and the challenger, to calculate the minimum trade-in value of the challenger, the spreadsheet tool that should be used is GOAL SEEK The minimum trade-in value that will make the challenger economically attractive will be $ 74,457arrow_forwardREMOVE PERCENTAGE SIGN PRESENT 33.333333% AS 33.33arrow_forward
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