A delivery car had a first cost of $34000, an annual operating cost of $18000, and an estimated $4000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 3.000 years and must be sold now as a used vehicle. At an interest rate of 9.00% 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 $

A delivery car had a first cost of $34000, an annual operating cost of $18000, and an estimated $4000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 3.000 years and must be sold now as a used vehicle. At an interest rate of 9.00% 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 $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 8 Canada's Wonderland has decided to carry out an analysis to determine when one of its roller coasters should be replaced. The existing roller coaster was purchased 25 years ago for $715,000. The costs of operating and maintaining this ride for a 5-year study period are predicted to be $70,000 in year 1 and would increase by $1,300 each year thereafter (i.e. $71,300 in year 2, $72,600 in year 3, etc.) Canada's Wonderland uses a MARR of 10% for roller coaster projects. (a) If the roller coaster loses value at a rate of 7% per year, what is the salvage value at the end of the study period? (b) What is the EAC for operating & maintenance costs (O&M) after 4 years in the study period? (c) Supposing the salvage value after 2 years in the study period is $100,773, what is the EAC for capital costs after 2 years in the study period? . (d) What is the economic remaining life of the roller coaster (i.e. in the study period)?
An equipment has a first cost of 500,000 PHP and the cost of installation is 30,000 PHP. At the end of its economic life of 35,000 operating hours, the salvage value is 10% of the equipment cost. Determine its book value at the end of the third year if its annual usage is 5,200hours.
A surface mining company has determined that it needs an additional haul truck to increase ore production by eliminating the idle time incurred by the loading shovel waiting for a haul truck to arrive. The mining company decided to lease a new $600,000 haul truck for 5 years. If the lease payments are set at $9,000 per month, determine the minimum resale value of the haul truck at the end of the lease period for the leasing company to carn a minimum 12.0% Nominal Annual Rate. Assume monthly compounding and that no other fees are applied
For equipment that has a first cost of $17,500, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 −1,000 7,000 2 −1,200 5,000 3 −1,300 4,500 4 −2,000 3,000 5 −3,000 2,000 Determine the economic service life ESL, at i = 10% per year using factors. The economic service life ESL, is ___ years with the AW = $___−
Raytheon wishes to use an automated environmental chamber in the manufacture of electronic components. The chamber is to be used for rigorous reliability testing and burn-in. It is installed for $800,000, $350,000 of which is borrowed at 11% for 5 years, and will have a salvage value of $150,000 after 8 years. Its use will create an opportunity to increase sales by $650,000 per year and will have operating expenses of $250,000 per year. Corporate income taxes are 40%. Develop tables using a spreadsheet to determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR, if the chamber is kept for 8 years. After-tax MARR is 10%. Use 7 years class depreciation for MARCS
A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $36,000, an operating cost of $4000, and a salvage value of $15,000 after 3 years. A Ford model will have a first cost of $32,000, an operating cost of $3100, and also have a $15,000 resale value, but after 4 years. (a) At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis. (b) What are the PW values for each vehicle? 10 16 -22)
Show the correct answer to this problem. Please not that in excel type of calculation I need a detailed solution with formulas and computations on it. Thank you.
Please answer as quickly as possible and zoom in for better view
Please solve this manually step by step. Please don't solve it in Excel. I need a manual step-by-step.
the first cost of an electric rebar bender is P306,000 and a salvage value of P40,000 at the end of its life for 4 years. money is worth 5.6% annually. if there is no salvage value and the annual maintenance cost is P18,000 find the annual cost of perpetual service.
Show complete solution