A constructionengineer has been asked to recomment an excavator for acquisition. Three alternatives have been identified, having the characteristics shown in the following table. (MARR=12%) Excavator Alternative A B C Useful life 4 years 5 years 6 years Investment $15,500 $20,250 $30,750 Annual operation cost $8,750 $5,850 $3,175 Terminal salvage value $2,500 $3,000 $3,250 a) Apply present worth analysis. b) Use shortest life to establish the planning horizon's length and apply present woth analysis again. c) Use longest life to establish the planning horizon's length and apply present woth analysis once more. d) Repeat PW analysis for 10 years standard analysis period. e) Consider an infinitely long planning period and calculate the annual worth for each investment alternatives.

Your firm is currently paying $3,000 a year to a commercial garbage collection agency to haul waste paper to the city dump. The paper could be sold as waste paper if it were baled and strapped. A paper baler is available at the following conditions:                        Purchase price = $6,500                      Labor to operate baler = $3,500/year                      Strapping material = $300/year                      Life of baler = 30 years                      Salvage value = $500                      MARR = 10%/year   If it is estimated that 500 bales would be produced per year, what would the selling price per bale to a wastepaper dealer have to be to make this project acceptable? Assume no inflation.

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Company X is considering the purchase of a helicopter for connecting services between their base airport and the new inter-county airport being built about 30 miles away. It is believed that the chopper will be needed only for 6 years until the Rapid Transit Connection is phased in. The estimates on two types of helicopters under consideration, The Whirl 2 B and The ROT 8, are given below: The Whirl 2 B First Cost Annual Maintenance Salvage Value Useful life in years $95,000 $3,000 $12,000 The ROT 8 $120,000 $9,000 $25,000 6 3 Assuming that the Whirl 2B will be available in the future with identical costs, what is the annual cost advantage of selecting The Whirl 2B ? (Use an interest rate of 10 %) A. cost more than $4,000 C. cost between $4,000 and $3,000 B. save between $3,000 and $2000 D. save more than $4,000

A city government feels that the energy production capacity must be expanded to meet anticipated demands for energy. There are three alternatives to consider: @A nuclear facility with an investment of $250 million, operating costs of $3 million per year and life of 20 years. @ A coal plant with an investment of $200 million operating costs of $10 million per year and a life of 20 years. 26°C I P Type here to search

An engineering alternative has a first cost of $12700, and is expected to have net annuai receipts of $1650 for the next 8 years. Assuming no salvage value at the end of the alternative's life, the amount of AW(0%) is: 1. c$500.00 2. C-$500.00 3. C-$62.50 4. C $62.50 5. C NONE.

Problem 05.024 Alternative Comparison - Different Lives You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $250,000, an operating cost of $5,500 per quarter, and a salvage value of $30,000 after its 2-year life. Package L has a first cost of $170,000 with a lower operating cost of $3,500 per quarter and an estimated $25,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 8% per year, compounded quarterly? The present worth of package K is $[ and that of package L is $[ (Click to select) offers the lower present worth.

YOUR QUESTION IS: 2. Three mutually exclusive design alternatives are being considered. The estimated sales and cost data for each alternative have been tabulated. The MARR is 20  per year. Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on fixed and variable costs. Determine which selection is preferable based on F W. Confirm your selection by separately checking is preferable using PW. A B Cc  Investment cost S 30 000 S  60 000   50 000  Est. units sold year 15 000 20 000 18 000  Unit selling price S 3.50  4.40  4.10  Unit variable cost S  1.00   1.40  1.15  Fixed annual expenses S 15 000 S 30 000 S 26 000  Market value 0 S 20 000   15 000  Useful life 10 yrs 10 yrs 10 yrs

Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are shown below. MARR is 8%/year.    ​                Model 127B                 ​Model 334A Initial Investment ​        $50,000 ​                    $80,000 Estimated Life ​        10                             ​5 End of Life Salvage ​    $10,000                         ​$0 Annual Income ​        $19,400                     ​$26,000 Annual Expense         ​$10,000 ​                    $6,000   2(a)    What is the discounted payback period for each investment? 2(b)    Which oven should Octavia Bakery purchase if they wish to minimize the DPBP? Answer:

• Smalltown, PA currently has a $38,000/year contract with a private company to transport students to their school and back. Smalltown can buy a bus for $40,000 that will be adequate for the next 5 years. Operating and maintenance costs are estimated to be $25,000 per year. At the end of 5 years, the bus will have an estimated salvage value of $5,000. Their MARR is 10%/year. а. What is the Excel or closed form equation (along with the value of relevant parameters) to determine this investment's internal rate of return?