Answered: A replacement analysis is most…

A replacement analysis is most objectively conducted from the viewpoint of: (a) An outsider (b) A consultant (c) A nonowner (d) Any of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A delivery car had a first cost of $34000, an annual operating cost of $18000, and an estimated…

A: The annual worth ascertains the annual cash flow throughout the investment period which is…

Q: Chatham Automotive [should/should not] replace the forklifts now since the minimum total EAC for the…

A: Given, For electric forklifts: Cost=$65,000 Salvage Value=$10,000 Operating Cost=$20,000 Increase…

Q: A vertical oil well has been drilled and completed. The productive zone is between the depths of…

A: Solution- This question comes from volumetric calculation of oil resources. Here Given, Formation…

Q: You and your partner have become very interested in cross-country motorcycle racing and wish to…

A: Present value is the value of investment in today's dollar. The present worth is the current value…

Q: A waiting line meeting the assumptions of M/M/1 has average time between arrivals of 2 per hour and…

A: The utilization factor or use factor is the ratio of the time that a piece of equipment is in use to…

Q: During the production phase of the component-based system, it is important to measure a vendor’s…

A: Production phase of the component-based system, has been to measure and using the vendor’s response…

Q: Nuclear safety devices installed several years ago have been depreciated from a first cost of…

A: To perform an after-tax annual worth (AW) based replacement study, we need to consider the after-tax…

Q: A piece of equipment that was purchased 2 years ago by Toshiba Imaging for $50,000 was expected to…

A: In a replacement study, the existing hardware or asset that has to be replaced is referred to as the…

Q: A delivery car had a first cost of $24000, an annual operating cost of $19000, and an estimated…

A: The first cost of the delivery car was $24000.The annual operating cost was $19000.The estimated…

Q: A delivery car had a first cost of $32,000, an annual operating cost of $13,000, and an estimated…

A: Annual worth refers to the equivalent uniform annual value of all the costs and income during a…

Q: You and your partner have become very interested in cross-country motorcycle racing and wish to…

A: Present worth (PW) is the current estimate of a sum of money that will occur in the future.…

Q: The purchasing price of the second-hand bulldozer is $150,000. It will have 8 years service life…

A: Purchase price of bulldozer = $150000 Life of bulldozer = 8 years Salvage value = $10000 First-year…

Q: Outline Maintenance Implementation Strategies for the following: 1.Management roles 2.Engineer…

A: Strategy implementation is the process of applying plans into action to achieve the desired…

Q: What would its market value, call it M, have to be after 2 years in order to make its annual worth…

A: In Engineering economics, Annual Worth (AW) is used to compare different cash flow series which…

Q: custom-designed home, FD, the prime contractor, realized he was not going to make the big profit…

A: (a) Code violations can be: Drawings and repairs: Construction of house is proper according to the…

Q: Hydrochloric acid, which fumes at room temperatures, creates a very corrosive work environment. A…

A: Step 1: To compute the Minimum trade-in -value, the annual worth of the current and the new machine…

Q: A chemical processing corporation is considering two methods to dispose of a non-hazardous chemical…

A: The present Worth Comparison technique is to look at the expense and advantages of the present year…

Q: The owner of a small pipeline construction company wants to determine how much he should bid in his…

A: A bid is an offer or proposal made by an individual, company, or organization to provide goods,…

Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…

A: The equal cost, as it is called, is equivalent to the annual cash flows that an asset generates over…

Q: An asset was purchased 5 years ago at a price of $52,000. It was expected to be in service for 8…

A: Here's how to calculate the selling price to recover the invested capital for the asset:1. Calculate…

Q: Large projects, such as a new tunnel under the Hudson, the Big Dig in Boston, the Denver airport, a…

A: Cost estimates is the term used by the producer to calculate a roughly idea of the price of the…

Q: A delivery car had a first cost of $32,000, an annual operating cost of $15,000, and an estimated…

A: The annual worth is the net of all the benefits and costs incurred over a one-year period.…

Q: Lodi Enterprises uses an after-tax MARR of 15% per year. If the company’s effective tax rate…

Q: What is meant by the opportunity-cost approach for a replacement study?

A: Replacement Study: It is an economic analysis which involves comparing a facility which already…

Q: You, an engineer, and an attorney friend, Rob, started a small business 3 years ago to do energy…

A: Cost of new equipment = $20,000 Book value = $10,000 Difference in cost of new equipment and value…

Q: A small strip-mining coal company is trying to decide whether it should purchase or lease a new…

A: Given Option 1: Purchase new clamshell The purchasing cost of clamshell (P)=$150,000 Salvage value…

Q: 1. Halcrow, Inc. expects to replace a downtime tracking system currently installed on CNC machines.…

A: Step 1: Step 2: Step 3: Step 4:

Q: If the after-tax ROR is 11.4% and the corporate Te is 39%, the approximate before-tax rate of return…

A: The rate of return (ROR) before tax can be calculated by using the formula as follows:

Q: A milling machine with enhanced CNC controls that allow for high-speed machining of free-form parts…

A: One of the fundamental analyses in capital budgeting is replacement analysis. Physical…

Q: An electric switch manufacturing company is trying to decide between three different assembly…

A: The cost structure of the three alternatives A, B, and C are presented in the table…

Q: The delivered equipment oast for a fixed-bed carbon adsorption system with a capacity of 5000 acini…

A: By using the following relation we can determine the installed cost.C1 is denoted by the original…

Q: Irish driving rental agency confirm if they want to return the rented car full of gas or with an…

A: The FTC's Bureau of Consumer Protection collects complaints and conducts investigations to stop…

Q: for Vendor B, the life years is 9 years.

A: In this case, we have to discuss the term MARR which is minimum acceptable rate of return. So MARR…

Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…

A: Equivalent annual cost ( in short EAC) is the yearly expense of buying, working, and keeping a…

Q: Three attributes are first cost, safety, and environmental concerns. Assigned importance scores are…

A: The weight of environmental concerns can be calculated as follows:

Q: What two cost categories form the trade off that leads to an optimum replacement interval? a. Direct…

A: Optimum replacement interval: - optimum replacement interval is that time interval of a machine’s…

Q: Nuclear safety devices installed several years ago have been depreciated from a first cost of…

A: Initial Cost = 200000 The device can be sold for = 15000 Upgradation cost = 9000 Operating Expenses…

Q: An independent contractor for a transportation company needs to determine whether she should upgrade…

A: Given upgrading cost= 4700operating cost of upgraded vehicle= $1450 per year.Salvage value=…

Q: the factors that affect the decision making in engineering projects are economic factors only Select…

A: Engineering economics is a branch of economics that deals with the application of economic…

Q: Leroy purchased an Al-based robotics system with the first cost of $345,000, an AOC of $148,000 per…

A: Annual value (AW) Analysis. Annual value (AW) Analysis is outlined because the equivalent uniform…

Q: What is the primary advantage of using prestressed concrete in bridge construction? A) It is cheaper…

A: Prestressed concrete is a structural component used to reduce the potential stresses induced by…

Question

A replacement analysis is most objectively conducted
from the viewpoint of:
(a) An outsider
(b) A consultant
(c) A nonowner
(d) Any of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Different types and capacities of crawler hoes are being considered for use in a significant excavation project to bury fiber-optic cable in Argentina. Several supervisors who have experience with similar projects have identified key attributes and their view of relative importance. Determine the weighted rank order (0 to 10 scale) and the normalized weights. Attribute Comment 1. Truck vs. hoe height 90% as important as trenching speed 2. Type of topsoil Only 10% of most important attribute 3. Type of subsoil 30% as important as trenching speed 4. Hoe cycle time Twice as important as type of subsoil 5. Hoe trenching speed Most important attribute 6. Cable-laying speed 80% as important as hoe cycle time
A small strip-mining coal company is trying to decide whether it should purchase or lease a new clamshell. If purchased, the “shell” will cost $140,000 and is expected to have a $45,000 salvage value after 6 years. Alternatively, the company can lease a clamshell for only $14,000 per year, but the lease payment will have to be made at the beginning of each year. If the clamshell is purchased, it will be leased to other strip-mining companies whenever possible, an activity that is expected to yield revenues of $10,000 per year. If the company’s MARR is 12% per year, should the clamshell be purchased or leased on the basis of a future worth analysis? Assume the annual M&O cost is the same for both options. The future worth when purchased is $ . The future worth when leased is $ .
None
White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $766,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $160,000. The company’s MARR is 25% per year. The equivalent annual cost of the installed equipment is $−
A(n) -based ethics code defines corporate values, creates a supportive environment, and stresses shared accountability among employees. Multiple Choice compliance integrity social corporate responsibility
One year ago you purchased a two-year bond at a discount for $900. It has a par value of $1000 and one year left until maturity. You have one interest payment of $50 at maturity. If the interest rate is 5% per year, what would be the capital gain or loss?
A manufacturing company has the choice of two suppliers to buy a piece of equipment from to use in its process. Characteristics of these two suppliers and associated costs are tabulated below. The equipment from supplier A costs more to buy and maintain, but it also has more revenue per unit sold. Selling enough units will at some point make it worth the higher cost. How many units per year must the company sell in order to justify using supplier A (i.e. what is the breakeven number of units to sell)? Use an interest rate of 12% per year. Supplier A Supplier B Initial cost $4,000 $3,000 Sale price (revenue per unit) $4 $3 Transportation costs (per unit) $0 $1.25 Annual maintenance cost $1,400 $1,100 Salvage value $800 $700 Useful life of the equipment (years) 5 4
The first cost of any property includes: the original purchase price and freight and transportation charges installation expenses initial taxes and permits fee all of the above
A textile processing company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it with a proprietary oxypure process. The relevant information for each process is shown. Use an interest rate of 15% per year to perform the replacement study. Additionally, write the PMT functions that display the information necessary to make the decision. Process Current Oxypure Original cost 6 years ago, $ 450,000 — Investment cost now, $ — 600,000 Current market value, $ 25,000 — Annual operating cost, $/year 190,000 70,000 Remaining life, years 3 10 Salvage value, $ 0 50,000
A material handling system was purchased 3 years ago for $128,355. Two years ago it required substantial upgrading at a cost of $17,158. It once again is requiring an upgrading cost of $27,127. Alternately, a new system can be purchased today at a cost of $195,603, with a salvage value of $18,627. The existing machine could be sold today for $52,114. In an economic replacement analysis, what first cost should be assigned to the existing system? Enter your answer as follow: 123456.78
Which of the following are classified as tangible assets? (A) Currencies B Buildings (c) Intellectual property (D Client relationship (E) None of the other choices are correct