A new manufacturing facility will produce two products, each of which requires a drilling operation during processing. Two alternative types of drilling machines (D1 and D2) are being considered for purchase. One of these machines must be selected. For the same annual demand, the annual production requirements (machine hours) and the annual operating expenses (per machine) are listed in the table below. Which machine should be selected if the MARR is 12% per year? Assumptions: The facility will operate 2,000 hours per year. Machine availability is 85% for Machine D1 and 80% for Machine D2. The yield of D1 is 95%, and the yield of D2 is 85%. Annual operating expenses are based on an assumed operation of 2,000 hours per year, and workers are paid during any idle time of Machine D1 or Machine D2. Assume repeatability. Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when i = 12% per year. The total equivalent annual cost of owning a required number of machines D1 is $ The total equivalent annual cost of owning a required number of machines D2 is $ Which machine should be selected? Choose the correct answer below. ... (Round to the nearest hundreds.) (Round to the nearest hundreds.)

As a project engineer, you received the AW analysis below from the finance department. It is for a new piece of equipment you ordered some months ago. You were told the interest rate used was 10% per year, but no first cost or projected salvage value was provided and you want to know them. Determine the values of P and S using the AW values for the year 3. Note: The AW values are equivalent values through the given year, not costs for the single year. Years Retained AW of First Cost, $ AW of Operating Cost, $ per Year AW of Salvage Value, $ 1 -51,700 -15,000 35,000 234 -27,091 -17,000 13,810 -18,899 -19,000 6,648 -14,827 -21,000 4,309 5 -12,398 -23,000 2,457 The value of P is $ 25,149.07 and the value of S is $ 8,853.89 Х

J. Doe must choose between two different models. The analysis period considered is 6 years. Model 1 has a life of four years with a first cost of $13,500 and maintenance costs of $1,250 per year in years 2, 3, and 4 (no maintenance costs in year 1). The salvage value for this model at the end of its life is $4,271 (For year 2 the salvage value is $7,594). Model 2 has a life of three years with a first cost of $15,000 and maintenance costs of $700 per year. Its salvage value at the end of its life is $9,300 (year 3). Which of the two models should be chosen by J. Doe if considering a MARR of 12%.

Required information A land development company is considering the purchase of earth-moving equipment. This equipment will have an estimated first cost of $214,000, a salvage value of $90,000, a life of 10 years, a maintenance cost of $42,000 per year, and an operating cost of $320 per day. Alternatively, the company can rent the necessary equipment for $1180 per day and hire a driver at $180 per day. When approached to rent for the breakeven number of days, the equipment owner indicated that the minimum rental is for 100 days per year; however, he might consider a lower daily rental cost. What is the daily rental cost to justify renting over purchasing? If the equipment was purchased, assume it would be used for the breakeven number of days. Determine the required rental cost per day. The daily rental cost to justify renting over purchasing is determined to be $

The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: = 10% per year 5 6 7 8 9 10 11 2 3 A= $2,000 PO=S30,000 C-55000 (Recurring every 5 y ears) C=55000 (Recurring every 5 years) Captalized Cost= ?

ABC Beverage, LLC, purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The finish on the anodized aluminum surface is produced by mechanical finishing technologies called brushing or bead blasting. Engineers at Wald are switching to more efficient, faster, and cheaper machines to supply ABC. Use the estimates and MARR = 8% per year to select between the two alternatives.     Brush Alternative Bead Blasting Alternative P $-400,000 $-400,000 n 6 years large Salvage Value $50,000 no value  AOC Nonlabor $-60,000 in year 1, decreasing by $2500 annually starting in year 2 $-70,000 per year

17) A professional photographer who specializes in wedding-related activities paid $24,800 for equipment that has a $2,000 estimated salvage value after five years. He estimates that his operating costs associated with hosting an event amount to $50 per day. If he charges $300 per day for his services, how many days (rounded up to the next integer) per year must he be employed in order to break even at an interest rate of 10% per year? (*

The cost of the extending a certain road at Yellowstone National Park is $1.7 million. Resurfacing and other maintenance are expected to cost $350,000 every 3 years with an interest rate of 6% per year.   a) What is the Annual Worth based capitalized cost of the road?   b) How will the answer (a) change if its Salvage is expected to be $3 million at the end of its useful Life?

The following five alternatives that are evaluated by the rate of return method, If the alternatives are independent and the MARR is 15% per year, the onels) to select is (are) Incremental ROR, N. When Compared with Alternative Initial Investment,S Alternative Alternative A BC DE 10.6 27.3 194 353 25.0 -25,000 -35,000 13.1 38.5 24.4 -40,000 13.4 46.5 27.3 26.8 -60,000 25.4 -75,000 20.2 Only D O Only D and E O Only A D, and E O Only E

Based on company records of similar equipment, a consulting aerospace engineer at Aerospatiale estimated AW values for a presently owned, highly accurate steel rivet inserter as shown. A challenger has ESL = 2 years and AWC= $−41,300 per year. The MARR is 12% per year. If Retained ThisNumber of Years The AW Value Is,$ per Year 1 −62,000 2 −51,000 3 −49,000 4 −53,000 5 −70,000   When should the next replacement evaluation take place, and under what assumption? The next replacement evaluation should take place in               (Click to select) 4 2 3 5  years, and under the assumption that the         (Click to select) defender challenger  estimates do not change.