Alpha Electronics can purchase a needed service for $90 per unit. The same service can be provided by equipment that costs $100,000 and that will have a salvage value of $0 at the end of 10 years. Annual operating costs for the equipment will be $7,000 per year plus $25 per unit produced. MARR is 12%/year. Solve, a. Based on a future worth analysis, should the equipment be purchased if the expected production is 200 units/year?b. Based on a future worth analysis, should the equipment be purchased ifthe expected production is 500 units/year? c. Determine the breakeven value for annual production that will return MARR on the investment in the new equipment.

Most likely estimates for a project are as follows MARR Useful life Initial investment Receipts Expenses (R-E) Determine whether the statement "An initial investment of $3,450 is profitable." is true or false Click the icon to view the relationship between the PW and the percent change in parameter Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Choose the correct choice below. False O True 10% per year 6 years $3,000 $1,000/year BIOD

Match the measures of worth in the first column with an appropriate definition from the second column.

A contractor has an excavator requiring repairs within her fleet of cquipment for executing projects. She is offered $6,000 for the equipment by another contractor but refuses to sell. Other financial details of the excavator are as follows: Repair cost of $4,000 Useful life of 5 years At the end of year 1, the operation and maintenance cost is pegged at $2.000. This value increases by $1,000, S1,200, S1,400, and $1,600 for the following years. At the end of year 1, the salvage value is pegged at $6,000. This value decreases by 25% for the following years. The minimum acceptable rate of return (MARR) is 12%. Due to the constant use and operation and maintenance required, determine how long this equipment should be kept by the contractor. N.B. SHOW THE DETAILED WORKINGS FOR EACH YEAR. DO NOT STOP AT YEAR AFTER THE ECONOMIC LIFE.

Hospital is evaluating the purchase of new office equipment from three vendors. Assume MARR=15% and 4 year useful life on all equipment. Select best vendor. What is the best vendor?

Question 5 The second, Van Y, has a useful life of 10 years and will cost you $33,000 in Year 0. You expect it to earn the same additional $8,000 per year in profit, and have a salvage value of $5,000 at the end of Year 10. Using the coterminated assumptions and a study period of 15 years, what is the Future Worth of Van Y? Assume that you reinvest all cash flows at the MARR after the end of the useful life of the van. Typed numeric answer will be automatically saved.

There are three alternatives X,Y,Z. With 10% MARR, which alternative should be chosen based on following conditions and why?  For X, initial cost is $10k, yearly revenue is $6K, Salvage is   $1k and useful life is calculated as   2yrs. For Y, initial cost is $15k, yearly revenue is $10K, Salvage is   -$2k and useful life is calculated as 3yrs. For Z, initial cost is $12k, yearly revenue is $5K, Salvage is $3k and useful life is calculated as 4yrs.

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $80,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $6,000 using the gang punch, but annual raw material costs would decrease $12,000. MARR is 5.5% /year. What is the present worth of this investment?

Solve it clearly and correctly please. I will rate.

Consider the following analysis of two alternatives, X & Y:         YR X Y             0 -200 -1000             1 50 250             2 50 250             3 50 250             4 50 250             5 100 300                               The MARR is 10%. Calculate the incremental rate of return in percent to the nearest 0.1 percent.