An injection molding system has a first cost of $185000 and an annual operating cost of $79000 in years 1 and 2, increasing by $3000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 14.00% per year, determine the ESL and the respective AW value of the system.
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- Please answer by hand calculations not excel:A presently owned machine can last 3 more years, if properly maintained at a cost of $15,000 per year. Its AOC is $31,000 per year. After 3 years, it can be sold for an estimated $9000. A replacement costs $80,000 with a $10,000 salvage value after 3 years and an operating cost of $19,000 per year. Different vendors have offered $10,000 and $20,000, respectively, for the current system as trade-in for the replacement machine. At i = 12% per year, perform a replacement study and determine whether the defender should be retained or replaced. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Based on company records of similar equipment, a consulting aerospace engineer at Aerospatiale estimated AW values for a presently owned, highly accurate steel rivet inserter as shown. A challenger has ESL = 2 years and AWC= $−41,300 per year. The MARR is 12% per year. If Retained ThisNumber of Years The AW Value Is,$ per Year 1 −62,000 2 −51,000 3 −49,000 4 −53,000 5 −70,000 When should the next replacement evaluation take place, and under what assumption? The next replacement evaluation should take place in (Click to select) 4 2 3 5 years, and under the assumption that the (Click to select) defender challenger estimates do not change.AE Criterion - Single Project* *Blank & Tarquin (2005). Engineering Economy, 7th edition. Example 6.3. The owner of a pizza shop plans to purchase and install five portable in-car systems to increase delivery speed and accuracy. Each system costs $4600, has a 5-year useful life, and may be salvaged for an estimated $300. Total operating cost for all systems is $1000 for the first year, increasing by $100 per year thereafter. The owner estimates increased net income of $6000 per year for all five systems. Is this project financially viable at an MARR of 10%?
- An injection molding system has a first cost of $170000 and an annual operating cost of $73000 in years 1 and 2, increasing by $5000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 12.00 % per year, determine the ESL and the respective AW value of the system. The ESL is year(s) and AW value of the system is $An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $4,700 and it will cost $1,450 per year to operate at the end of year that follows. She will keep the vehicle for 6 years; at the end of thi period, the upgraded vehicle will have a salvage value of $4,300. Alternatively, she could trade in her vehicle to lease a new vehicle. Sh estimates that her current vehicle has a trade-in value of $9.300 and that there will be $4,500 due at lease signing. She further estimates that it will cost $3,300 per year to lease and operate the vehicle. The independent contractor's MARR is 12%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. EUAC(keep): EUAC(lease): $ S Carry all interim calculations to…A piece of equipment has a first cost of $60000, a maximum useful life of 4 years, and a market (salvage) value described by the relation Sk = 48000 – 8400k, where k is the number of years since it was purchased. The AOC series is estimated using AOC = 24000 + 3600k. The interest rate is 9% per year. When should the company replace this asset?
- The AW values for retaining a presently owned machine for additional years are shown in the table. Note that the values represent the AW amount for each of the n years that the asset is kept, that is, if it is kept 5 more years, the annual worth is $95,000 for each of the 5 years. Assume that future costs remain as estimated for the replacement study and that used machines like the one presently owned will always be available. (a) What is the ESL and associated AW of the defender at a MARR of 12% per year? (b) A challenger with an ESL of 7 years and an AWC = $ −89,500 per year has been identified. Which AW will be less for the respective ESL periods? Retention Period, Years AW Value, $ per Year 1 −92,000 2 −88,000 3 −85,000 4 −89,000 5 −95,000An international textile company's North America Division must decide which type of fabric cutting machines it will use-straight knife or round knife. The estimates are summarized below. Compare them on the basis of annual worth values at i = 10% per year. Which device do you recommend? First cost, $ AOC, $/year Overhaul in year 2, $ Salvage value, $ Life, years Round Knife -250,000 -31,000 40,000 6 Straight Knife -170,000 -35,000 -26,000 10,000 4An injection molding system has a first cost of $180,000 and an annual operating cost of $84,000 in years 1 and 2, increasing by $5,000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 15% per year, determine the ESL and the respective AW value of the system. via spreadsheet that graphs the total AW and its components
- TRUE OR FALSE: If there is a past estimation error, there is a need to replace the property immediately. The physical life is always greater than all the other “life” factors under replacement analysis. If breakeven analysis is conducted with PW analysis for different MEAs, it doesn’t guarantee that the fastestalternative to reach its breakeven point has also the highest equivalent worth.Q3 (a) For equipment that has a first cost of RM 10,000 and the estimated operating costs and year-end salvage values shown in Table Q3(a) below, determine the economic service life at i = 10% per year. Table Q3(a) Operating Cost, RM per Year -1,000 Salvage Value, RM 7,000 Year 1 -1,200 -1,300 -2,000 5,000 4,500 3,000 3 4 5 -3,000 2,000 (10 marks) A furniture company intends to evaluate whether they want to stick with the existing equipment (defender) or replace them with the new productive equipment (challenger). The details of the cost required are shown in Table Q3(b) below. Use an interest rate of 20% per year. (b)A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction firm for $25,000. The instrument will be used for 6 years and be worth $1,250 at that time. The annual cost of use and maintenance will be $7,500. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $26,000, with use and maintenance costs of only $8,000 and salvage value after 6 years of $3,500. The marginal tax rate is 25%, and MARR is an after-tax 12%. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Alternative 1: $ Alternative 2: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. eTextbook and…