! Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 13% per year. Platform First cost, $ million M & O, $ million per year Salvage value, $ million Estimated life, years X -300 -320 75 20 Y -450 -290 50 20 Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- platform Z is $- million. The platform selected based on the present worth is (Click to select) Z -510 -230 90 20 million, the present worth of platform Y is $- million, and the present worth of

! Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 13% per year. Platform First cost, $ million M & O, $ million per year Salvage value, $ million Estimated life, years X -300 -320 75 20 Y -450 -290 50 20 Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- platform Z is $- million. The platform selected based on the present worth is (Click to select) Z -510 -230 90 20 million, the present worth of platform Y is $- million, and the present worth of

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 16% per year. Platform First cost, $ million Y Z -300 -450 -510 M&O, $ million per year -320 -290 -230 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20 Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- 2298.4 worth of platform Z is $- 1944.14 million, the present worth of platform Y is $- 2262.15 million, and the present million. The platform selected based on the present worth is platform Z
Question 3 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: A- PW for machine A= 23,979 8,679 4,000 Machine B 30000 6,000 5,000 Machine C 10000 4,000 1,000
National 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?
QUESTION 8 Two processes can be used for producing a polymer that reduces friction loss in engines. Which process should be selected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Process A Process B First cost, $ 1,397,151 534,579 Annual operating cost, $ per year 90,383 32,000 Salvage value, $ 80,000 130,000 Update cost at year 2, $ 15,000 Life, years 4 8 EGN 3212 - Eco PW for Process A-
QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions : A- AW for machine A= 21,302 9,993 4,000 Machine B 30000 6,000 5,000 Machine C 10000 4,000 1,000
For 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= 20872 9067 4793 - 123476 infinite 9266
K Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (ie, low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 15% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-200,000 $-40,000 $2,000 2 years The present worth for the DDM method is $2635271 The present worth for the LS method is $ The [(Click to select) method is selected LS $-500,000 $-40,000 $21,000 4 years
A company wants to automize its production line. Two main technology shortlisted after several studies on the market. If the MARR is 0.1 and the life spans of technology A and B are 3 and 6 years respectively. Answer the following questions by using PW method. Note: all of the cost and revenue units are in thousand dollars. Costs Technology A Technology B First cost, $ -234 436 Annual Operation Cost, $ -56 42 Maintenance Cost, $ -13 per Year -29.2 each 2 years 50 98 Salvage Value, $ Life, Year 3 a) What is the PW of Technology A?
5.24 For the cash flows below, use an annual worth comparison to determine which alternative is best at an interest rate of 1% per month. First cost, $ M&O costs, $/month Overhaul every 10 years, $ Salvage value, $ Life, years X -90,000 -400,000 -30,000 -20,000 - Y 7000 3 - 25,000 10 Z -900,000 -13,000 -80,000 200,000 8
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-E
A large textile company is trying to decide which sludge dewatering process it should use ahead of its sludge drying operation. The costs associated with centrifuge and belt press systems are shown. Compare them on the basis of their annual worths using an interest rate of 10% per year. System First cost, $ Centrifuge -250,000 -31,000 Belt Press -170,000 -35,000 -26,000 10,000 4 AOC, $/year Overhaul in year 2, $ Salvage value, $ Life, years The annual worth of the centrifuge system is $- The system selected on the basis of the annual worth analysis is the (Click to select) ✓ system. 40,000 6 and the annual worth of the belt press system is $-
12% 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