Omega Racing and Motor Corporation wishes to evaluate two alternative CNC machines for NHRA engine building. The estimated cash flows are shown in Table below. Use the Annual Worth (AW) method at interest 10% per year to select the better alternative Performance Annual Machine Machine R S First cost, $ 250,000 370,000
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- 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) $277,339A 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…The survey firm of Layer, Anderson, and Pope (MAP) LLP is considering the purchase of a pieceof new GPS equipment. Data concerning the alternative under consideration are presented below.First Cost $28,000Annual Income 7,000Annual Costs 2,500Recalibration at end of Year 4 4,000Salvage Value 2,800If the equipment has a life of eight years and MAP’s minimum attractive rate of return (MARR) is5%, what is the annual worth of the equipment?
- 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 $90,000RKI Instruments manufactures a ventilation controller designed for monitoring and controlling carbon monoxide in parking garages, boiler rooms, tunnels, etc. The net cash flow associated with one plant for the first 3 years of operation is shown. (a) What do the two rules about sign changes indicate concerning i* values? (b) Find all rate of return values between 0 and 100%. Year Net Cash Flow, $ 0 −30,000 1 20,000 2 15,000 3 −2000Using Incremental with EUAW analysis find the best alternative, MARR = %10. should use Excel and show your equations seperately, see below example: [A Benefit - [IC (A/P, i%, n) - Salvage (A/F, i, n)] + A Cost+ G Cost (A/G, i, n)] Data B C A First Cost $2,300,000 $2,780,000 $2,540,000 Salvage Value $82,000 $118,000 $97,000 Annual Benefit $580,000 $670,000 $650,000 M&O $65,000 $78,000 $71,000 M&O Gradient $11,000 $15,000 $12,500 Useful Life, Years 9 9 9 You - ZOOM
- Using Incremental with EUAW analysis find the best alternative, MARR = %10. should use Excel and show your equations seperately, see below example: [A Benefit - [IC (A/P, i%, n) - Salvage (A/F, i, n)] + A Cost+ G Cost (A/G, i, n)] A B C $2,300,000 $2,780,000 $2,540,000 $82,000 $118,000 $97,000 $580,000 $670,000 $650,000 $65,000 $78,000 $71,000 $11,000 $15,000 $12,500 9 9 9 Data First Cost Salvage Value Annual Benefit M&O M&O Gradient Useful Life, Years YouA granite company is planning to buy a fully automatedgranite cutting machine. If it is purchased under down payment, the cost of themachine is $ 16,00,000. If it is purchased under installment basis, thecompany has to pay 25% of the cost at the time of purchase and the remainingamount in 10 annual equal installments of $ 2,00,000 each. Suggest the bestalternative for the company using the present worth basis at i = 18%,compounded annually.Army Research Laboratory scientists developed a diffusion-enhanced adhesion process which is expected to significantly improve the performance of multifunction hybrid composites. NASA engineers estimate that composites made using the new process will result in savings in space exploration projects. The cash flows for one project are estimated. Determine the rate of return per year. Year, t Cost ($1000) Savings ($1000) 0 −210 — 1 −150 — 2–5 — 100 + 60(t − 2)
- Wall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month and costs of $1,000 per month with an initial purchase of $28,000. How long will Wall's Pharmacy have to sell a new product if the MARR is 3% per month? Wall's Pharmacy will have to sell a new product for __ months.Economical solar energy and energy from fusion have been identified as two of engineering's grand challenges. While work continues on these grand challenges, conservation of energy from non-renewable sources is vital. On a practical level, installing low thermal emissivity windows (low-e windows) on buildings can contribute to energy conservation. Installing low-e windows on a small office building is estimated to cost $10,500. The windows are expected to last 9 years and have no salvage value at that time. The energy savings from the windows are expected to be $2,525 in the 1st year. After the 1st year, the savings are expected to increase by $200 each year due to escalating fossil fuel costs. MARR is 12% per year and annual worth is the preferred measure of economic worth. Part a Are the low-e windows an economically attractive investment? Click here to access the TVM Factor Table Calculator. The annual worth of installing the low-e windows is $ Carry all interim calculations to 5…O b. 3425 O c. 2369 O d. 3825 Clear my choice Alternative X has a first cost of 33000 an annuàl operating cost of 6300 , and a'salvage value of 9525 after 2 year. Alternative Y has a first cost of 34000 an annual operating cost of 6400, and a salvage value of 13400 after 2 year. If MARR of 2% per year, approximately what is the PW of each alternative? Select one: O a. PW of X= -36438 and PW of Y= -33881 O b. PW of X= -36802 and PW of Y= -34220 O c. PW of X= -36077 and PW of Y= -33546 O d. PW of X= -37170 and PW of Y= -34562 Next pa US ACTIVITY 2:23 AM Ca ENG 4/21/202 hp