2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the MARR is 8% per year. Relevant cost data are as follows: Electronic Fabrication Machine Investment cost $15,000 Useful life 12 years Market (salvage) value at end of useful life $5,000 Annual operating expenses Overhead cost-end of 6th year $800 $1000 Overhead cost-end of 10th year $1500

2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the MARR is 8% per year. Relevant cost data are as follows: Electronic Fabrication Machine Investment cost $15,000 Useful life 12 years Market (salvage) value at end of useful life $5,000 Annual operating expenses Overhead cost-end of 6th year $800 $1000 Overhead cost-end of 10th year $1500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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%
Problem 2: For the cash flows shown, determine the incremental cash flow between machines B and A. Machine A First Cost, $ -13,000 -25,000 AOC, $ per Year Salvage Value, $ Life, Years -2,000 -400 3,000 6,000 3
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%
4) Based on estimates the data for 2 types of bridges with different lives are as follows. If the minimum attractive rate of return is 10%, determine which project is more desirable using Annual Cost Method and ROR. Timber Bridge Steel Bridge First Cost P500k P850k Salvage Value 20k 100k Life in yrs 15 20 Annual maintenance 75k 50k
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 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. D -68,000 -14,000 8,000 E -78,000 -17,000 10,000 6 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 $- [138012.93 The machine selected based on the future worth analysis is and the future worth of machine E is $- 138012.93
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Economics No details needed only answer There are three machines in the mechancical engineering lab A B, and Cand need to be evaluated economically. Machine A has a first cost af $4500, an annual operating cost (AOC) of $900, a salvage value of $200, and a service life 4 years. Machine B has a first cost of $3500, an annual operating cost (AOC) of $700, a salvage value of $350 and a service ife 4 years. Machine Chas a first cost of S6000, an annual operating cost (AOC) of $50, a salvage value of $100, and a service life 8 years. What is the present worth for machine C The MARR is 10% per year O $6,250 $6.300 $7,002 $46.222
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In comparing the machines on a present worth basis, the present worth of machine X, the cost of money is 10% per year, is closest to Machine X Machine Y Initial cost, $ -66,000 -46,000 Annual cost, $/year Salvage value, $ Life, years -10,000 -15,000 10,000 24,000 3. $-103,908 $-87,840 None of the answers S-65,270
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