Please answer ASAP I will rate The alternatives are mutually exclusive and the MARR is 6% per year.Vendor 1Vendor 2Vendor 3First cost, $-200,000 -550,000 -1,000,000Annual cost, $ per year- 50,000-20,000- 10,000Revenue, $ per year120,000120,000110,000Salvage value, $Life, years25,000500,0001015The annual worth of vendor 2 cash fl ow estimates is closest to:O a. $-43,370O b. $63,370O c. $43,370O d. S-63,370

The alternatives are mutually exclusive and the MARR is 6% per year. Vendor 1 Vendor 2 Vendor 3 - 200,000 - 50,000 First cost, $ –550,000 -1,000,000 Annual cost, $ per year -20,000 -10,000 Revenue, $ per year 120,000 120,000 110,000 Salvage value, $ 25,000 500,000 Life, years 10 15 The annual worth of vendor 2 cash fl ow estimates is closest to: O a. S-43,370 O b. $63,370 O . $43,370 O d. S-63,370

The alternatives are mutually exclusive and the MARR is 6% per year. Vendor 1 Vendor 2 Vendor 3 - 200,000 - 50,000 First cost, $ –550,000 -1,000,000 Annual cost, $ per year -20,000 -10,000 Revenue, $ per year 120,000 120,000 110,000 Salvage value, $ 25,000 500,000 Life, years 10 15 The annual worth of vendor 2 cash fl ow estimates is closest to: O a. S-43,370 O b. $63,370 O . $43,370 O d. S-63,370

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Perform present worth analysis with the costs shown below to select the best alternative. The MARR is 12% per year. Machine A 1000 Machine B *1000 Purchase cost $52 $63 $15/year $9 /year $31 Ayear Annual cost Annual benefit $38 /year $19 Salvage value Useful life $13 4 years S years
Calculate the total capital cost and the annual worth for the following cash flow diagram (the time is infinity) 2 4 8 10 12 14 20 26 Year Infinity $2000 $3000 S50,000 $1500 $1500 $1500 Only one рayment Cost repeated every 7 years i = 5% per year $90,000
Identify the net cash flows shown below as either conventional or nonconventional. Year 0 1 2 3 4 5 (a) 400 300 200 100 0 −100 (b) −50 −50 −50 40 40 40 (c) −1000 200 300 400 300 200 (d) −6000 −500 −500 −750 10,000 −2000 (e) 50 −10 50 50 50 50
Problem 2: Select one of the following two plans using the present worth method. Given i= 20% per year. 1st Cost ($) Life (years) Salvage value ($) Annual Cost ($) Plan 1 25,000 10 5,000 6,000 Plan 2 50,000 20 0 2,500
Example A company is considering two types of equipment for its manufacturing plant. Pertinent data are as follows: Freeze Type A Type B First cost P200,000 P300,000 Annual Operating Cost P32,000 P24,000 D Annual Labor Cost P50,000 P32,000 Insurance and Property Taxes 3% 3% Payroll Taxes 4% 4% Estimated Life TO 10 If the minimum required rate of return is 15%, which equipment should be selected?
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%
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%
Answer (c) (i) and (ii) only
A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units) in Table below. Which one should be selected on the basis of Present Worth (PW) analysis at 10% per year? In-house Contract First cost, $ Annual cost, $ Annual income, $ per year Salvage value, $ Life, years -30 per year -5 -2 14 3.1 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Present Worth Sinking Fund Compound Capital Recovery A/P Present Gradient Gradient Amount Amount Worth Present Worth Uniform Series F/P P/F A/F F/A P/A P/G A/G 1 1.1000 0.9091 1.00000 1.0000 1.10000 0.9091 1.2100 0.8264 0.47619 2.1000 0.57619 1.7355 0.8264 0.4762 3 1.3310 0.7513 0.30211 3.3100 0.40211 2.4869 2.3291 0.9366 4 1.4641 0.6830 0.21547 4.6410 0.31547 3.1699 4.3781 1.3812 0.6209 0.5645 0.5132 1.6105 0.16380 6.1051 0.26380 3.7908 6.8618 1.8101 6 1.7716 0.12961…
For the net cash flow and cumulative cash flows shown, the value of x is nearest: (a) $−8,000 (b) $−16,000 (c) $16,000 (d) $41,000 Year 1 2 3 4 5 Net Cash Flow, $ +13,000 −29,000 −25,000 50,000 x CCF, $ +13,000 −16,000 −41,000 +9000 +1000
Please do not give solution in image format thanku Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000,has annual operating and maintenance costs of $800,000, and requires overhauls every 5 years at a cost of $1,250,000.Design B is more sophisticated, including computer controls; it has an initial cost of $5,750,000, has annual operatingand maintenance costs of $600,000, and requires overhauls every 10 years at a cost of $3,000,000. Using a 5 percent/year interest rate, determine the capitalized cost for each design and recommend which should be chosen
Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339