A $45,000 investment in a new conveyor system is projected to improve throughput and increasing revenue by $14,000 per year for five years The conveyor will have an estimated market value of $4,000 at the end of five years. Using an MARR 12% per year, what is the FW? $-19,329.40 $13,635.70 $16,998.90 Onone of the above POWE 4

A $45,000 investment in a new conveyor system is projected to improve throughput and increasing revenue by $14,000 per year for five years The conveyor will have an estimated market value of $4,000 at the end of five years. Using an MARR 12% per year, what is the FW? $-19,329.40 $13,635.70 $16,998.90 Onone of the above POWE 4

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

points A project requires an investment of $1,000,000 at year zero, It will pay $100,000 per year forever. What is the present worth of this project? The interest rate is 15% per year Da PW$1,333,333 1 PW 52,333,333 Oc PW-$1,666,667 Od PWS1.333,333
A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18.000, and 5 of $7000 after 4 years. Mact will cost $50,000 with an AOC of $16,000 and 5 of $9000 after 6 years. The AW equations for Machine X and Y at 12% interest rate Select one: O a AWX=-30,000(A/P12 % .4) -18,000 7,000(A/F.12%.4); AWY- 50,000(A/P12 %6) -16.000 9.000(A/F.12%,6) O b. AWX=-30,000(A/P12%24) -18,000 7,000(A/F.12%24) AWY- -50,000(A/P12%24)-16.000 9.000(A/F12%24) Oc AWX=-30.000(A/P12 % 6 ) -18,000 7,000(A/F.12%6) AWY 50.000(A/P12% 6)-16.000 9,000(A/F.12%,6) Od AWX-30,000(A/P12% 12)-18.000 7.000(A/F.12% 121 AWY- 50.000(A/P12% 12)-16,000 9,000(A/F.12%,12) .
If ε = 11% per year, what is the ERR for the cash flows of this project? Let MARR = 11% per year. 1 2 ΕΟΥ Cash Flow ($) 0 110 80 50 The ERR for the cash flows of this project is %. (Round to two decimal places.) 3 20 4 - 1,820 5 600 ***** 6 480 7 370 8 330 9 190 10 120
A continuous improvement team has helped to save $20,000 for the company on a process that will not be changed for the next 10 years. If the team has spent $50,000 on the improvement project, the net present worth (NPW) of savings on this improvement project is $150,000 at a MARR of 5%. O True O False
Question 3 A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10% compounded semiannually, determine if the project should be executed First cost $45,000 Semiannual operating cost $10,000 Semiannual income $20,000 Salvage value $20,000 Life in years 4 years Oa. IRR = 17% semiannual Ob. IRR= 18.7% semiannual O IRR = 16.9% semiannual Od. IRR 15.3% semiannual
Q4. [ remaining useful life) are shown in the table below. Assume the MARR is 10% per year. Based on this information, - ] The present worth of the cash flows through year k, PWk for a defender (3- year What is the economic life and the related minimum equivalent uniform annual cost, EUAC, for the defender? a. b. Compute marginal cost, show your calculations and fill the table below. Year(k) Total (marginal) cost PWk EUAC -$14,020 -$28,100 3 -$43,075
earch 1 Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 11.5% per year compounded yearly. End of Year Series 1 Series 2 1 Q A 0 1 2 3 4 5 $250 $300 Value of X: $ @ 2 $350 $35X $400 $25X $0 $0 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 14. Click here to across the TVM Factor Table Calculator EG W D Bi + Alt $0 3 $0 F3 WE $15X $5X X F4 $ 4 C F5 % 5 B R T FG 6 Y F7 & 7 SD F G H F8 U . A 8 J A F9 1 ( 9 Z X CV B N M F10 K O ) - F11 0 L 3 Alt 11 27 P F12 : PrtSc { [ Ctrl Rain toni + 11 ? Ins
John plans to establish an investment fund for his retirement. He plans to deposit $4,500 the first year in this fund and increase these deposits by 6% each subsequent year over a total period of 30 years. How much will be in the account immediately after making the 30th deposit if the fund earns an interest rate of 6% per year? OA. $322,819 OB. $4,201,263 OC. $290.537 OD. $731,482 GRITH
A transit system is considering buying 6 more buses to provide better service. It will cost $100,000 for buying a new bus and $15,000 per year for maintenance and operation for the following 8 years. If the city’s MARR is 8%, what is the equivalent uniform annual cost of this project? Assume the bus has no value at the end of 8 years.
1. Your rich uncle has offered you two living trust payouts for the rest of your life. The positive cash flows of each trust are shown below. If your personal MARR is 10% per year, which trust should you select? ΕΟΥ Trust A Trust B 1-10 11-infinity P50,000 75,000 60,000 65,000 Note: At 10% per year interest, infinity occurs when N = 80 years
A company is considering the purchase of a fleet of % ton pickup trucks for their contracting business. The owner is trying to decide whether to purchase the trucks with diesel or gas engines. The company specifies an intermal rate of return on equipment purchases of 6% . The owner estimates the following cash flows of costs for a gas and diesel equipped truck. What is the EUAC of the Diesel Truck? Gas Diesel Purchase Purchase Year Fuel Fuel Maintain Maintain $30,000 $250 $300 $39,000 $6,750 $5,000 $1,000 $5,000 $1,500 1 $500 $6,750 $6,750 2 3 $350 $5,000 4 $400 $6,750 $2,000 $5,000 $2,500 $5,000 $3,000 $5,000 $3,500 $5,000 $4,000 | $5,000 5 6. Note: no need to find the common useful life when using EUAC.
Determine the net present worth (NPW) of the cash flows given in table below for an investment opportunity being presented to a company. MARR =12% Year 0 1-10 11-15 16-25 26-30 Cash Flow -$100K 10K 20K -5K 30K Group of answer choices $90,030 $80,914 $72,916 $112,200