Electric- Gas- Solar- Powered Powered Powered First cost, $ -2500 -3500 -6000 Annual operating cost (AOC), $/year -900 - 700 -50 Salvage value, $ 200 350 100 Life, years 5 5 5
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Perform a present worth analysis of equal-service machines that have the costs shown on the next page, if the MARR is 10% per year. Revenues for all three alternatives are expected to be the same.
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- Question 10 Problem 3- Equipment Replacement (Reemplazo de equipo) Corvallis Company is considering purchasing new equipment. The m nuevo equipo. El gerente ha recopilado la siguiente información: Current Machinery - Maquinaria Actual Original cost-Costo original Accumulated depreciation - Depreciación acumulada Annual operating costs - Costos operacionales anuales Current market value - Valor actual en el Mercado Salvage value at the end of five years - Valor residual al final de 5 años New Machinery: - Maquinaria Nueva $25,000 20,000 5,500 750 0 600.000What is the most appropriate Analysis Period for the four different alternatives shown below? Item First Cost Uniform Annual Benefit Salvage Value Useful Life in Years Machine 1 $1,244,565 $273,804 $124,456 12 Machine 2 $2,297,397 $413,531 $229,740 20 d. 60 years e. 12 years Machine 3 $8,585,814 $1,416,659 $858,581 60 Machine 4 $3,737,193 $672,695 $373,719 30 Incremental Analysis (AIRR) b. 12 years for Machine 1; 20 years for Machine 2; 60 years for Machine 3; and 30 years for Machine 4 c. The average of the useful lives of the different alternatives, in this case, 30.5 yearsQuestion 3. Choose the best piping systems as shown in the table below using Annual Worth method (MARR: 6%). Concrete piping UPVC piping Initial cost (OR) Ca Initial cost (OR) Annual 0&M (OR/y)" 10000 Annual O&M (OR/yr) 5000 Rehabilitation cost at the 120000 5th year Useful life (years)¤ 10 Useful life (years)= 20 Ca 1720102 1136000 1828000:
- Given the problem: Conduits made of Timber First Cost $ 50,025.34 Estimated Life 13 years Scrap Value $ 2,992 Annual Maintenance $ 1,301 Interest 0.086 What is the Capitalized Cost?Three alternatives have the following cost data associated with them: Data Alt. 1 Alt. 2 Alt. 3 Useful Life, Years 10 10 10 First Cost $1,325,000 $1,980,000 $1,650,000 Annual Benefit 265,000 589,000 435,000 Annual M&O Costs 95,000 97,000 91,000 Annual M&O Gradient 2,300 2,100 1,980 Salvage Value 145,000 205,000 178,000 Loan Payment 150,946 225,565 187,971 The loan payments are calculated using an interest rate of 10%, a life equal to the life of the machine, and a down payment of 30%. Use a MARR of 12% and determine which machine, if any, should be purchased. Use incremental analysis.The carrying amount of production machine as of December 31, 2020 isa. P1,024,500 c. P1,069,500b. P1,029,000 d. P 990,750
- A new machine with a purchase price of $90,021, with transportation costs of $9,593, installation costs of $6,472, and special acquisition fees of $2,612, would have a cost basis of a. $108,698 b. $96,493 Oc. $90,021 d. $99,105profile-image Time remaining: 00 : 09 : 41 Accounting We have the following data for a power plant: 1 MW CENTRAL ECONOMIC BALANCE Power: 1 Mwa Maintenance cost: 3% per year Initial cost of operation: 5% per year Regulated Rate: $0.015/kWh (20 years) Project cost = $750,000.00 Plant factor= 60% Energy: 5256000 KWh Income from regulated tariff: 78840 Annual revenue increase: 6% Initial maintenance cost/year of annual maintenance (2% installation): $ 22,500.00 Annual maintenance increase: 5% Initial cost of operation/year (1% Installation) $ 37,500.00 Annual operation increase: 3% It is assumed that in year 10, an equipment update will be carried out whose cost will be 25% of the value of the investment = $187,500.00 SOLVE: In what year will the investment be recovered?E 12-9 Research and Development Cost In 2019, Lalli Corporation incurred R&D costs as follow: Materials used from inventory 100,000 Personnel in R&D lab 100,000 Allocation of the cost of utilities and maintenance costs of the R&D facility 50,000 These costs relate to a product that will be marked in 2020. The company estimates tht these costs will be recouped by December 31, 2020. Required: 1. What is the amount of R&D cost expensed in 2019? 2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?
- Net Present Value of both machines. Factors for Machine A: Year 1 0.8929 Year 2 0.7972 Year 3 0.7118 Year 4 0.6355 Machine B Year 4 3.0373UJ0 per ycal 101 all assct tmat mialy Cost B28,000, lany Cost $28 Ust $26, has a salvage value of $1500 whenever it is sold, and generates cash flow of $2900 per year. Use factors and a spreadsheet. 8.27 A vibrating sieve shaker in a soil analysis labora- tory has a first cost of $8000 and an expected sal- vage value of $500 when it is sold. A positive cash flow of only $900 per year can be attributed di- rectly to the shaker. (a) Determine the payback period if the required return is 8% per year. (b) If the asset will be in service for an estimated 12 years, should it be purchased? 8.28 You work part time selling mobile phone ads on a OINS commission basis. (a) Using factors and a spread- sheet, determine the number of years you woulda- At 10%, find PW for the following Table Warehouse cost equipment cost Installation cost Annual maintenance costs Annual Revenues Salvage Machine life 0 1 2 3 -90,000 b- A project with an IRR = 20%, it has the following NCF (S) X X 4000 (SUS) 50,000 46.000 Find X? 6,500 8,000 45,000 15,000 15 years