A company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as following: Vendor A has a first cost of $15,000, an annual operating cost of $3,500, a salvage value of $1000, and a service life of 6 years. Vendor B has a first cost of $18,000, an annual operating cost of $3,100, a salvage value of $2,000, and a service life of 9 years. If a study period of 5 years is used and the salvage values are not expected to change, which vendor should be selected? -$26,236, A -$26,636, A -$25,336, A -$24,666, B O O

A manufacturing company has the choice of two suppliers to buy a piece of equipment from to use in its process. Characteristics of these two suppliers and associated costs are tabulated below.  The equipment from supplier A costs more to buy and maintain, but it also has more revenue per unit sold.  Selling enough units will at some point make it worth the higher cost.  How many units per year must the company sell in order to justify using supplier A (i.e. what is the breakeven number of units to sell)?  Use an interest rate of 12% per year.   Supplier A Supplier B Initial cost  $4,000 $3,000 Sale price (revenue per unit) $4 $3 Transportation costs (per unit)  $0 $1.25 Annual maintenance cost $1,400 $1,100 Salvage value $800 $700 Useful life of the equipment (years) 5 4

Your Area Director wants to purchase new ergonomic office equipment for your staff. The total purchase price is quoted by Herman Miller to be $22,656. The main reason for the proposed purchase is the high rate of lost work days due to low back and wrist/hand issues. These are common problems associated with poor ergonomic position and repetition. You can sell the equipment in 8 years and have a salvage value of $4,619. It is estimated that the purchase of the new equipment will cut your lost work days by 61% and save you an estimated $11,812 per year in the costs associated with the lost work days. What is your EUAW for this proposed purchase at an interest rate of 6%? A. $7,354 B. $4,886 C. $8,631 D. $6,625

A delivery car had a first cost of $34,000, an annual operating cost of $15,000, and an estimated $5000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 4 years and must be sold now as a used vehicle. At an interest rate of 12% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? The market value of the used vehicle is determined to be $ 26423

Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $660,000, an operating cost of $90,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,100,000, 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) ✓

An IE works in the automation department of a surgical equipment manufacturing company that produces specially ordered equipment for hospitals. To upgrade the quality of the assembly process of the camera used in laparoscopic surgery probes, two approaches are available: make and buy. The make alternative has an initial equipment cost of $175,000, a life of 5 years, a $25,000 salvage value, a processing cost of $3,000 per camera, and an M&O cost of $90,000. The buy alternative requires contracting the assembly operation externally at a cost of $7,250 per camera. If the MARR is 12% per year, how many cameras per year must be assembled to justify the make alternative? 27 cameras must be assembled per year to justify the make alternative.

please show all steps with explanation to getting the answer! Thanks

Ee 353.

Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $38,000, an annual operating cost (AOC) of $10,000, and a service life of 2 years. Method B will cost $79,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $143,000 initially with an AOC of $3,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 6% of its first cost. Perform a future worth analysis to select the method at i= 13% per year. The future worth of method A is $55118 The future worth of method B is $ The future worth of method C is $ Method B is selected.