The first cost of a 3D printer (computer equipment) is $26,000 with operating costs of $0.27 per unit. It will be sold for $2800 at the end of six years. Production numbers will be 780 units per day for 280 days per year. What is the after tax annual cost of the printer if the MARR is 14 % and income tax rate is 11%
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- Ali needs to work on a project in Australia for 5 years and he needs a car. He has the choice between buying one and leasing one. After some research, he finds out the following: If he decides to buy the car, it would cost him 300,000 AED and after five years, he could sell it for 30A AED. If he decides to lease the car, he would have to pay 50,000 AED per year. Assuming an MARR of S perform an evaluation and decide if he should lease or buy the car.You are evaluating two different silicon wafer milling machines. The Techron | costs $264,000, has a 3-year life, and has pretax operating costs of $71,000 per year. The Techron Il costs $460,000, has a 5-year life, and has pretax operating costs of $44,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $48,000. If your tax rate is 22 percent and your discount rate is 12 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) > Answer is complete but not entirely correct. Techron I $ -134,840.83 Techron II $ -107,570.18Ramsis is a heavy equipment rental company. It is considering the purchase of Tower crane at a price of BD 775,000. This crane is expected to operate for 12 years before retirement with no salvage value at the end. The company is planning to rent the crane for BD 108.000 per year starting year 2 and the rental inereases by 10% thereafter. Cost of this maintenance is expected to be BD 15,000 cach year. a) What is the discounted payback period, if the MARR is 8% per year? b) In your engineering analysis study, which method would you select (Payback or Preseut worth) to solhve this problem? And why?
- New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $830,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $485,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $17,500. The sprayer would not change revenues, but it is expected to save the firm $351,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar. What is the Year-0 net cash flow? $ What are the net operating cash flows in Years 1, 2, and 3? Year 1: $ Year 2: $ Year 3: $ What…A process plant making 5000kg /day of a product selling for $1.75 per kg has annual directproduction costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What isthe fixed charge per kg at the break-even point? If the selling price of the product is increased by10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35percent of gross earnings?MY NOTES ASK YOUR TEACHER Derive the equation to compute the equivalent annual cost given the capital cost of a highway, such that A (A/P) x P, where A/P is the capital recovery factor. (Use the following as necessary: P for the present worth, i for the annual interest as a decimal number, and n for the number of years.) A= DACCICUCE 43 Compute the equivalent annual cost (in dollars) if the capital cost of a transportation project is $500,000, annual interest 9.8%, and n 30 years. (Enter your answer as a positive value.)
- . A young mechanical engineer is considering establishing his own small company. An investment of P400,000 will be required which will be recovered in 15 years. It is estimated that sales will be P800,000 per year and that operating expenses will be as follows. Materials P160,000 per year Labor P280,000 per year Overhead P40,000 +10% of sales per year Selling expense P60,000 The man will give u his regular job paying P216, 000 per year and devote full time to the operation of the business; this will result in decreasing labor cost by P40,000 per year, material cost by P28,000 per year and overhead cost by P32,000 per year. If the man expects to earn at least 20% of his capital, should he invest?31. The purchase of a motor for P6000 and a generator for P4000 will allow the company to produce its own energy. The configuration can be assembled for P500. The service will operate for 1600 hours per year for 10 years. The maintenance cost is P300 per year, and cost to operate is PO.85 per hour for fuel and related cost. Using straight line depreciation, what is the annual cost for the operation? There is a P400 salvage value for the system at the end of 10 year. a. P2,710 c. P2,630 b. P2,480 d. P2,670Engineering economy - ENGR 3322 The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are incorrectly delivered. The capital investment in the system is $65,000, and the projected annual savings are tabled below. The system’s market value at the EOY five is negligible, and the MARR is 18% per year. Calculate the present worth of the project. a. $ 35,730 b. $ 36,730 c. $ 37,730 d. None of the choices
- A manufacturing company purchased 10 years a milling machine for ₽60,000. A straight-linedepreciation reserve had been provided on the 20-year life of the machine. The owner of themachine shop desires to replace the old milling machine with a modern unit of manyadvantages costing ₽100,000. It can sell the old unit for ₽20,000. How much new capital will berequired for the purchase?A logistics company is budgeting for its fuel usage for the next 4 years. Current fuel costs are $350,000 per year; it believes that fuel costs will rise 6% per year due to inflation over the next four years. Assuming the logistics company uses a a 16% combined return on investment, what would be the present worth of its fuel costs for years 1-4? Click here to access the TVM Factor Table calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ± $10.Compute for the Annual Worth of MEA1 and explain.