A mechanical engineer designs and sells equipment that automates manual labor processes. He is offering a machine/robot combination that will significantly reduce labor costs associated with manufacturing garage-door opener transmitters. The equipment has a first cost of $170,000, an estimated annual operating cost of $37,000, a maximum useful life of 5 years, and a $21,500 salvage value anytime it is replaced. The existing equipment was purchased 12 years ago for $65,000 and has an annual operating cost of $78,000. The currently owned equipment can be used for 2 more years after which it will be auctioned off for an expected amount of $4,250, less 36% paid to the company handling the auction. The same scenario will occur if the currently owned equipment is replaced at present. Determine the defender and challenger estimates of P,n, S, and AOC in conducting a replacement analysis today at an interest rate of 20% per year. The Pvalue for defender is $ The n value for defender is The Svalue for defender is $ The AOC value for defender is $ years

A manufacturing company has been experimenting with a new additive that is used to reduce polluting effluents from its production facility. Test results suggest that if no additive is used, pollution levels are 3000 parts per million (ppm). For each pound of additive used per week, pollution levels are reduced by 0.49 ppm. The additive costs $30 per pound. The reason for experimenting with the additive is that a government agency is conducting weekly air quality tests in the vicinity of the production facility. Regulations state that if pollution levels exceed 2000 ppm, a fine is imposed. The fine is $1000 for each ppm by which the pollution level exceeds the 2000 ppm limit. If the company has budgeted $80,000 per week to spend on the additive and any pollution fines, how much additive should be purchased each week for use by the company? What is the resulting amount that the company is willing to pay in terms of weekly fines?

Jenck's Homemade Ice Cream, LLC is planning its production for next week. As there is a current shortage of fresh milk and one of the mixing machines is broken, demand for chocolate chocolate-chip ice cream and chocolate peanut-butter ice cream continues to outpace the company's production capacities. The mixing machines will be available for only for only 158.6 hours, and only 17500 gallons of high grade milk will be available. One hundred gallons of chocolate chocolate-chip requires 0.6 hour of mixing and 75 gallons of milk. One hundred gallons of chocolate peanut-butter ice cream requires 0.8 hour of mixing and 80 gallons of milk. If company earns a profit of $115.00 per hundred gallons of chocolate chocolate-chip and $130.00 per hundred gallons of chocolate peanut-butter, how many gallons of each ice cream should company produce next week to maximize profit? How much profit will result? (Use x for hundred gallons of chocolate chocolate-chip and y for hundred gallons of chocolate…

A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year 2070. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distance away. Construction would start at the beginning of 2030 and take five years at a cost of $30 million per year. The cost of maintenance and repairs starts after completion of construction and for the first year is $3 million, increasing by 2 percent per year thereafter. At an interest rate of 7 percent, what is the present worth of this project? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginning of 2026. Assume there is no salvage value at the end of year 2070. Click the icon to view the table of compound interest factors for discrete compounding periods when i = 7%. The present worth of this project is $ (Round to two decimal places as needed.) million.