A company that manufactures amplified pressure transducers wishes to decide between the machines shown - variable speed (VS) and dual speed (DS). Determine the range of Ai*,incremental ROR. (i.e. 5%-6%).First cost, $AOC, $ per yearOverhaul in year 3, $Overhaul in year 4, $Salvage value, $Life, yearsVS-260,000-230,000-40,00055,0006O a Ai* vs-ps = 19% - 20%Ob.Ai* vs os = 4%-5%OcAi* vs os = 10% -11%Ⓒd. Ai vs Ds = 17%-18%DS-215,000-235,000-24,00014,0006

Here,YearVSDS0 $ -2,60,000.00 $ -2,15,000.001 $ -2,30,000.00 $ -2,35,000.002 $ -2,30,000.00 $…

Answered: A company that manufactures amplified…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

A company that manufactures amplified pressure transducers wishes to decide between the machines shown - variable speed (VS) and dual speed (DS). Determine the range of Ai*, incremental ROR. (i.e. 5%-6%). First cost, $ AOC, $ per year Overhaul in year 3, $ Overhaul in year 4, $ Salvage value, $ Life, years Vs -260,000 -230,000 -40,000 55,000 6 a. Ai*vs-ds 19% - 20% O b. Ai* vs.Ds = 10%-11% OC.Ai* *VS-Ds = 4%-5% O d. Ai* vs-Ds = 17% -18% VS-DS DS -215,000 -235,000 -24,000 14,000 6
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 15000 B- AW for machine B= 8,342 4,000 Answer the below questions : Machine B 6 20,447 6,000 5,000 Machine C 10000 4,000 1,000
For the below ME alternatives, which machine should be selected based on the AW analysis. MARR-10% Machine B 27,724 6,000 Machine A Machine C First cost, $ 15000 10000 Annual cost, S/year Salvage value, $ Life, years 8,293 4,000 4,000 5,000 1,000 Answer the below questions: B- AW for machine B= For the below ME alternatives, which machine should be selected based on the AW analysis. MARR 10%. Machine A 15000 Machine B Machine C 12,409 30000 First cost, $ Annual cost, $/year Salvage value, $ Life, years 17,181 6,000 4,000 4,000 5.000 1,000 Answer the below questions: C- AW for machine C=
A manufacturing company is trying to decide between the two machines shown below. Determine which machine should be selected on the basis of rate of return. Assume the MARR is 20% per year. Machine A Machine B Initial Cost, $ -18,000 -35,000 Annual operating cost, $/year -4,000 -3,600 Salvage value, $ 1,000 2,700 Life, years 3 6
Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis? Machine X Machine Y First cost, $ -200,000 -400,000 Annual operating cost, $ per year -40.000 -50,000 Salvage value, $ 80,000 90,000 Life, years 3 Solution: PW Machine x =5 (Use the right sign) PW Machine Y = 5 (Use the right sign) So, the best alternative is Machine
3. Grade Motor Co. is considering two different makes of blow molding machine for one of its automotive products. The cost data for the two alternatives are provided in table below. MARR=12. Using IRR analysis, state which equipment should be bought. Use 12% as the initial guess for IRR. Initial cost Annual operating cost Benefits/Year Salvage value Life Equipment X Equipment Y $160K $285K 45K 90K 20K 10 Years 45K 105K 40K
A firm is trying to decide which of two machines to purchase as described in in the table below. Using the interest rate 9% or 0.09, use present worth analysis to determine which machine, if either, should be purchased. Show all your work. Machine: A - B First Cost: $800 - $600 Annual Net Benefit: $130 - $230 Salvage Value: $40 - $20 Usefil Life (years): 9 - 3
RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows: Equipment 1 Equipment 2 First Cost P 12,000 P 18,000 Salvage Value P 600 P 2,000 Annual Operation P 3,200 P 2,500 Annual Maintenance P 1,200 P 1,000 Taxes & Insurance 3% 3% Life, years 10 15 Money is worth at least 16%. Which equipment should be selected? Use: a. Rate of Return Method Rate of Return Method Annual Cost Method NOTE: Show cashflow diagram.
A solid-waste recycling plant is considering two types of storage bins using an MARR of 10% per year. (a) Use ROR evaluation to determine which should be selected. (b) Confirm the selection using the regular AW method at MARR = 10% per year. Storage Bin P Q First cost, $ −18,000 −35,000 AOC, $ per year −4000 −3600 Salvage value, $ 1000 2700 Life, years 3 6
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, $ -222 -427 Annual Operation Cost, $ -68 -45 Maintenance Cost, $ -14 per Year -31.6 each 2 years Salvage Value, $ 50 98 Life, Year 3 6 a) What is the PW of Technology A? Answer: b) What is the PW for Technology B? Answer: which Technology will be chosen? Why? (Briefly explain in the Text box below) Note: Attach your handwritten answers here by uploading the file.
Its required to select one of the two machines, if you know that the firms MARR-12% and if the costs are shown below: Project A Project B Initial cost, $ 7650 12900 Maintenance cost, S/year 1200 900 Salvage value, $ 2000 Economic life, year 4 Compare the two-alternative using: 1-Equavlent Annual worth comparison. 2- Present worth comparison
The Fence Company is setting up a new production line to create top rails. The relevant data for two alternatives are shown below. Flow Line Manufacturing Cell Installed Cost Expected Life Salvage Value Variable Cost per Top Rail Click here to access the TVM Factor Table Calculator $15,000 5 years $0 $6.00 $10,000 5 years $0 $7.00

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS