Two production methods are proposed. Method A cost $60,000 initially, will have an operating cost (ANNUAL) of $28,000 per year, and salvage of $15,000. Method B will have a first cost of $120,000, operating cost of $8,500 per year (ANNUAL) and salvage value of $40,000. Both have 3 year life and use a MARR of 12%. Using PW, which one would you select?
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- Give typing answer with explanation and conclusion Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $780,000, an operating cost of $80,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,280,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $− , and the present worth of process W is $− . The process selected on the basis of the present worth analysis is process (Click to select) .the The fixed costs at Mahi consulting company are $120,000 annually. The annual revenue is $3,000 per client and each client has a $500 variahl cost. Find the breakeven point per year and the annual profit/loss if 408 60 clients have are serviced next year.A company with a MARR of 15% must install one of two production machines that provide equivalent service (same benefits). Machine X has an initial cost of $40,000 with an annual operating and maintenance (O&M) cost of $30,000 and a salvage value of $5,000 after its 5-year life. Machine Y has an initial cost of $60,000 with an annual operating and maintenance (O&M) cost of $20,000 and a salvage value of $12,000 after its 5-year life. The net present worth (NPW) for machine X is:
- period of 5 years. Salvage value is estimated at 10% of its first cost. The interest rate is 12% per at $ 150,000. Labor and other operating costs are estimated to be $35,000 per year over the study high-use component can be purchased (bought) for S 25 per unit with a quick delivery. QWA Electronics is considering between two alternatives for their electronic components' needs. A Mestion #6 (20 points) cost of $ 5 per unit. For this option of making the product, QWA needs to purchase equipment today Alternatively, QWA can make the components in-house and have it already available at a variable year. Determine the breakeven quantity based on annual worth of cash flows. 0. Indicate whether to buy or make the components at the expected usage level of 5000 units per year. Explain your answer. a.SHOW SOLUTION 1.A corporation uses a type of motor truck which costs P 250,000, with life of 2 years and final salvage value P 40,000. If money is worth 5% and using the annual cost method, how much could the corporation afford to pay for another type of truck for the same purpose whose life is 3 years with final salvage value P 50,000?Required information One of two methods must be used to produce expansion anchors. Method A costs $65.000 initially and will have a $14.000 salvage value after 3 years. The operating cost with this method will be $23,000 per year. Method B will have a first cost of $140,000, an operating cost of $14,000 per year, and a $32.000 salvage value after its 3-year life. The interest rate for both the methods is 15%. Which method should be used on the basis of a present worth analysis? The present worth of method A Is $ and that of method B is $ Method (Cick to solect) v is selected by the company.
- A production plant manager has been presented with two proposals for automating an assembly process. Proposal A involve an initial cost of $15000 and an annual operating cost of $2000 per year for the next 4 years. Thereafter, the operating cost is expected to be $2700 per year. This equipment is expected to have a 20- year life with no salvage value. Proposal B requires an initial investment of $25000 and an annual operating cost of $1200 per year for the first 3 years. Thereafter, the operating cost is expected to increase by $120 per year. This equipment is expected to last 20 years and have a salvage value of $2000. If the company's MARR is 10%, which should be accepted using ROR analysis?5.24 You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $160,000, an operating cost of $7000 per quarter, and a salvage value of $40,000 after its 2-year life. Package L has a first cost of $210,000 with a lower operating cost of $5000 per quarter, and an estimated $26,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 8% per year, compounded quarterly?This is the question and 4 options on an answer - I come up with 1800 but that is not an option so can you help me with the correct answer and what I am missing? please and thank you! Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18000. What is the breakeven point in dollars? $30000 $28800 $45000 $25200
- there are three machines in the mechanicle angineering lab A ,B , and C and need to be evaluted economically, machine A has first cost of $4500,an annual operating cost(AOE) of $900, a salvage value of $200 and a service life 4 year. machine B has first cost of $3500, an annual operating cost(AOE) of $700, a salvage value of $350, and a service life 4 year. machine C has first cost of $6000, an annual operating cost(AOE) of $50, a salvage value of $100 and a service life 8 year. which machine should be selected ? the MARR is 10% per year. (a) machine A (B) machine B (c) machine C (d) noneFor th below two machines and based on CC analysis which machine we should select? MARR=10% Machine A Machine B First cost, $ Annual cost, $/year Salvage value, $ Life, years 3 Answer the below question: B- the CC for machine B= 20,538 11,820 7,655 infinite 113,798 8,89412% per year. For the cash flows shown, use an annual worth comparison and an interest rate of First cost, $ Annual cost$, per year Overhaul cost every 5 years,$ Salvage value, $ Life, years X Y -100,000 -250,000 -40,000 -30,000 0 2,000 30,000 10,000 5 10 Z -500,000 -10,000 5,000 ∞ a) Determine the alternative that is economically best. b) Determine the first cost required for each of the two alternatives not selected in part a) so that