Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 11% per year to determine which location to select, if any. Location North N South S Initial Cost, $ 1,360,000 2,900,000 Annual Cost, $ per Year 480.000 365,000 Disbenefits, $ per Year 70,000 24,000 Life, Years 00 The AB/C ratio is Select location N
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- If you are asked to perform an incremental ROR analysis for the two robots listed below, how would you set them up in an incremental cash flow table? WALL-E EVE First cost, $ -40,000 -35,000 Annual operating cost, S per year -1,500 -2,750 Salvage value, $ Life, years 30,000 5 20,500 O Alternative A: WALL-E Alternative B: EVE O The order does not matter. O Alternative A: EVE Alternative B: WALL-ENational homebuilders Inc plans to purchase new rain gutter forming equipment. Two manufacturers offered the following estimates, First Cost, $ Annual Operating Cost, $/year Salvage Value, $ Life, years Vendor A 15,000 3500 1000 6 Vendor B 18,000 3100 2000 9 a. Determine which vendor should be selected on the basis of a PW comparison, if the MARR is 15% per year. b. National Homebuilders has a standard practice of evaluating all options over a 5-year period. If a study period of 5 years is used and the salvage values are not expected to change, which vendor should be selected?In most engineering economy studies, the best alternative is the one which:a. Will last the longest timeb. Is the easiest to implementc. Costs the leastd. Is the most politically correct
- A buyer placed an initial order with a supplier named Ronco that makes brake assenblies. The order was for 100 pieces at a per-unit price of $281. The buyer collected the following costs from Ronco: Direct Matevial Costs $100/mit Direct Labor Costs $50/unit (5 hours/unit at $10/hour labor rate Overhead Costs $75/anit Icalculated at 150% of direct labor) Total Costs of Goods Sold $225/unit Seller's Profit (25% of total $56 cost makup Total price per unit $281 At 200 units, what should the buyer erpect to pay for these units whon factoring in a 20 productivity ienprovenent deaning atai O Not enou Information avalable O 1250un O $266.75nicA diagram is needed for (a) and (b)A start-up chemical company has an average cost of capital of 15% per year.Additionally, it has a long-term goal of making at least a 20% per year rate of return onall investments; however, because of market opportunity the ROR can be reduced for thecurrent project by 3%. If the company acquired $50 million in venture capital, how muchdid it have to earn in the first year?
- Compare the alternatives below using AW and i = 10% per year D -350,000 -35,000 35,000 ∞ First Cost, $ Annual operating cost, $/year Salvage value, $ Life, years с -150,000 - 10,000 15,000 10Interest is a manifestation of what general concept in engineering economy?Discuss the importance of alternative identification in the engineering economic process.
- An engineer has the option of deciding the number of turbines for the power plant he/she works at. Fixed costs and potential power output range are as follows: Number of Turbines Total annual Corresponding power fixed cost (USD) output range (MW) 1 9600 0-300 2 15000 301-600 3 20000 601-900 Variable cost is 10 USD/MW and revenue is 40 USD/MW The breakeven point for 1-turbine system is: MW The breakeven point for 2-turbine system is: MW The breakeven point for 3-turbine system is: MW If the demand is below 300 MW, does it make sense to build a turbine? If the demand is 580 MW, how many turbines are needed? If the demand is 620 MW, would you use the 3-turbine system? If projected annual demand is between 580 and 660 MW, how many turbines should be built?In decision making process, the most important role of engineering economist is to define feasible alternatives. Select one: True FalseYou received a memo that you are appointed as the team leader for a new commercial building project. Based on the estimation, if your team will be using a steel, it will cost 80,000 per month and 145000 cost if glass For the plan A, it has an annualmaintenance cost is 25000, 1000 repair cost every 2 years and a salvage value of 3000 after 15 years For the plan B, the repair cost is 3500 every 3 years, annual maintenance cost of 30000 and a salvage value of 1000 after 20 years. Compute for the capitalized cost if the money is worth 8% compounded annually and choose the best material for the project.CC PlanA = (2 decimal placesCC Plan B = (2 decimal places)