It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on opposite sides. Which is more economical? Use future worth method and present worth method. Land RouteSubmarine RouteLength, milesFirst cost of cable per mileAnnual maintenance per mileInterest on InvestmentТахesNet salvage value per mileLife, years10P40,0005P68,0009503,50018%18%3%3%12,00022,0001515

Answered: Image /qna-images/answer/47f9942c-76ea-4f19-b7f5-fae91649b943.jpg

Answered: It is proposed to place a cable on an…

It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on opposite sides. Which is more economical?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 1. A piece of construction equipment was bought 3 years ago for $ 500,000, expected li: of 8 years…

A: PW stands for present worth. EAC stands for equivalent annual cost, it can be calculated by dividing…

Q: An area can be irrigated by pumping water from a nearby river. Two competing installations are being…

A: Given, MARR = 12% Electric power for the pump costs $0.06 per hour. Pump A Pump B Operating…

Q: Options are: P3 P3--p2 C+E A+B+C A D+E+F F B+D A+B+C+D+E P1-P2 G+H+C+E

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A tunnel to transport water initially cost $1,000,000 and has expected maintenance costs that will…

A: Given Initial cost =$1,000,000 no. of years =6 years MARR=20% years maintenance cost1…

Q: Three projects are under evaluation. Project A will cost $2 million to build and $300,000 per year…

A: The project with minimum cost would be selected.

Q: Empire Limited is trying to decide between two machines which are necessary in their manufacturing…

A: The measure that depicts the value of the expected stream of income being determined on the date of…

Q: Wolfpack Inc., a textile manufacturing company, is considering opening a production and shipping…

A: For calculating this, find the value of X that makes the investment at breakeven. Formula to…

Q: City engineers are considering two plans for municipal aqueduct tunnels. They are to decide between…

A: Interest rate = 8% = 0.08 Plan A: Initial cost= $3,000,000 Every 10 years cost= $100,000 Plan B:…

Q: Two electric motors to power industrial elevators are being considered. Everyone can reach 100 hp.…

A: Use the below formula: Annual energy cost = Operating hour per year × Cost of power per kilowatt…

Q: DuPont claims that its synthetic composites will replace metals in the construction of future…

A: a) Interest rate, i = 10% Number of years, n = 6 years Total annual travel = 20,000 miles Hence,…

Q: Three mutually exclusive alternatives are being considered for the production equipment at a tissue…

A: The formula for calculating net present value is given below. NPA=A1+iN-1i1+i+F1+i-n-Capital…

Q: Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA…

A: An annuity is a series of payment/cashflows that a paid/received at equal intervals. The formula for…

Q: A concrete pavement on a street would cost P 2M and would lasts for 5 years. Minor maintenance cost…

A: The answer is given below

Q: Three mutually exclusive design alternatives are being considered. The estimated cash flows for each…

A: Given information Alternative A Alternative B Alternative C Capital Investment (First Cost)…

Q: The following three mutually exclusive alternatives are to be compared using the present worth…

A: Given first cost of alternative X = 48000 Annual cost = 10600 Annual benefits = 36000 Salvage value…

Q: once comparison between two alternatives using payback period criterion, we choose the one whose…

A: Answer to the question is as follows:

Q: The cash flow diagram of two mutually exclusive alternatives is given below, Select the best…

A: Present Value is the value of the sum of money in future which can be in the form of lump sum, equal…

Q: Nando's is considering releasing a new peri-peri product. Option 1 is a peri-chicken pizza and…

A: Net present value is the present value of the cash flows at the required rate of return of your…

Q: When comparing multiple alternatives: a. Choose the alternative with the greatest PW over the…

A: The different alternatives are the options available with the firm for making the decisions in the…

Q: 12. In calculating the annual worth of an alternative over one life cycle, the value obtained is: a.…

A: Introduction Annual Worth All cash flows are converted to an equivalent uniform annual amount over…

Q: A project may not be feasible according to future worth analysis although it is feasible according…

A: Present Worth refers to the current value of future cash flow, whereas future worth is the value of…

Q: Samsung Electronics is considering a product expansion of their Galaxy S Series. Two alternatives…

A: The correct answer is given in the second step.

Q: one of the mutually exclusive alternatives below must be selected. Base your recommendation on…

A: MARR = 15% incremental cash flow at EOY0 (Sauer - Glock) = -2P - (-P) = -P incremental cash flow…

Q: Three mutually exclusive design alternatives are being considered. The estimated cash flows for each…

A: Cash flow is the actual or hypothetical movement of money: in a very limited sense, cash flow is a…

Q: e) 14- From the following comparisons of mutually exclusive alternatives, decide which one should be…

A: Given information There are 4 projects given A,B,C and D MARR=11% Project IRR A 14.1 B 11.7…

Q: If a company must choose between two projects, it should proceed with the one that generates a…

A: In capital budgeting, IRR is a tool that is used to measure the profitability of an investment.…

Q: Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost…

A: The formula used to calculate IRR through interpolation is:

Q: Calculate the Annual Worth of both alternatives shown in the following table, using i= 4%, and…

A: i = 4%

Q: The Department of Energy is proposingnew rules mandating 2 plans to increase efficiency in clothes…

A: Given : Cash flows : A=$253.7 B=$69 Costs : A=$62 B=$81 Rate of Interest=10% Number of years=15

Q: Project A requires an immediate investment of $8000 and another $6000 in three years. Net returns…

A: Net Present Value is the value of all future cash flows (positive and negative) discounted to the…

Q: A new design of aircraft saves annually fuel consumption of 45,000 gallons of fuel costing $6 per…

A: Annual saving = 45,000 x $6 = $270,000

Q: The Gadomski School of Engineering is considering the purchase of a new plasma cutter for the St.…

A: Given information: Manufacturer Miller Hypertherm Tomahawk Initial Cost $2850 $1875 $1200…

Q: Two mutually exclusive electricity generators are considered for purchase by XYZ company.…

A: Incremental initial Cost (A-B) = 100,000-80,000 = 20,000 Incremental Salvage(A-B) = 35,000 - 10,000…

Q: Two mutually exclusive alternatives are being considered for the environmental protection equipment…

A: To find the alternative which is preferred over other , we find annual worth of the cash flows and…

Q: Two mutually exculsive alternative are being considered for the environmental protection equipment…

A: Alternative A Alternative B Capital Investment 20000 38000 Annual Expenses 5500 4000 Salvage…

Q: Which alternative should be selected based on the incremental ROR analysis? Three mutually exclusive…

A: Incremental Internal Rate of Return is an analysis of the return over investment done with to find…

Q: To compare the machines on the basis of present worth analysis, the present worth values to use are:…

A: We know, Present worth of constant annual operating expense are often calculated by multiplying with…

Q: The following four alternative investments are being compared at MARR of 12%. Which investment is…

A: Economic life refers to the expected period of time during which an investment remains useful to the…

Q: DuPont claims that its synthetic composites will replace metals in the construction of future…

A: Given data is, Rate of interest= i=10% Time(or) anticipated life = 6years Annual travel =…

Q: Current Attempt in Progress A convention center is considering the installation of occupancy sensors…

Q: Consider the following mutually exclusive alternatives: Alternative A Alternative B $1,114,000…

A: Given:- Capital investment of Alternative A=$473,000Capital investment of Alternative…

Q: Two mutually exclusive alternatives are being considered for the environmental protection equipment…

A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…

Q: A factory needs to increase its facilities and study two alternatives: Alternative 1: Construction…

A: The factory needs to increase its facilities by choosing from the two given alternatives. Let's…

Q: A city is spending $19.3 million on a new sewage system. The expected life of the system is 40…

A: Capitalized value is the present valuation of an asset, most often real estate, based on a…

Q: Two mutually exculsive alternative are being considered for the environmental protection equipment…

A: It is given that : AW (A): Investment - $ 20,000 Annual expense - $5,500 Life – 5 yrs Salvage value…

Q: Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost…

A: The formula used to calculate IRR through interpolation is:

Q: The annual worth can be calculated from the alternative’s: a. either ( a) or ( b) b. future worth…

Q: Two mutually exclusive design alternatives are being considered for purchase. Doing nothing is also…

A: Given: To Find: The best alternative:

Q: When using the benefit cost ratio (B/C) measure of worth, what benchmark is the calculated ratio…

A: In the market, firms use various analytical tools to estimate their cost and benefit from the…

Question

It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on opposite sides. Which is more economical? Use future worth method and present worth method.

Land Route
Submarine Route
Length, miles
First cost of cable per mile
Annual maintenance per mile
Interest on Investment
Тахes
Net salvage value per mile
Life, years
10
P40,000
5
P68,000
950
3,500
18%
18%
3%
3%
12,000
22,000
15
15

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 8 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O A
Required information Akash Uni-Safe in Chennai, India, makes Terminator fire extinguishers. The company needs replacement equipment to form the neck at the top of each extinguisher during production. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years D E -70,000 -15,000 10,000 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. -60,000 -12,000 8,000 Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors. The future worth of machine D is $- 8008 and the future worth of machine E is $- 20280 The machine selected based on the future worth analysis is
Fill in the missing values: QP TC TB Tprofit MC MB Mprofit ATC AFC AVC 16 500-50 ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ 16 132 16 16 156 16 186 0 5 6 7 8 16 9 16 272 10 16 332 16 224
A company is going to buy a new machine for manufacturing its products. Five machines are available. Data is as follows: A B C D E First Cost 25,200 31,800 38,500 46,600 52,500 Power per year 1,300 1,450 2,600 2,300 2,300 Labor per year 10,500 9,200 6,200 3,900 2,350 Maintenance per year 2,800 1,800 1,400 1,300 850 Taxes per year 3% 3% 3% 3% 3% Life, years 5 5 5 5 5 If money is worth 15% before taxes to the company, which machine should be chosen? Use Annual Cost Method
Solar plant investment or cost establish 40000$, Maintenance Cost Expected customer Demand (KWH) Year 0 0 0 350 1500 1 300 1200 2 200 1000 3 200 800 4 150 700 5 What is the cost Consumption Kilowatt Per Hour? please tell me how can I solve it , as you know we have Present worth, annual worth and future worth! please i need correct answer because i have post it before and they give me wrong answer , do not search it because these number is randomly , i am looking for the way of answer in case of the question has change that i can solve it by your clarification . rate 10%
Please Solve In 15mins e-h
I need help with qusetion A, B and C
The Pear company produces and sells pPhones. Their production costs are $290000 plus $180 for each pPhone they produce, but they can sell the pPhones for $250 each. How many pPhones should the Pear company produce and sell in order to break even? The break-even number of pPhones is Preview
Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the total present worth of each alternatives? Use MARR of 20%
Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the present values of their purchase profit? Use MARR of 20%
Golf International Division designs and manufactures small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. (a) Compare the annual worth of the two systems at MARR = 10% per year. Select the better system. Construct the cash flow diagram. (b) Determine the salvage value for the T System that will make the company indifferent between the two systems.
Engineering Economics 00011 Please provide a step by step solution using ROR