Baguio Rabbitry must replace the piping system in its barn. Based on cost of capital of 12%which of the two following alternatives should be chosen using the following methods?a) RORAIb) AWc) PWPamper pipesP 75,000Fluid FlushP 90,000First CostOperating costs per5,0004,000yearSavings per yearSalvage value1,0002,0002,000Useful life1010 Baguio Rabbitry must replace the piping system in its barn. Based on cost of capital of 12%which of the two following alternatives should be chosen using the following methods?a) RORAIb) AWc) PWPamper pipesP 75,000Fluid FlushP 90,000First CostOperating costs per5,0004,000yearSavings per yearSalvage value1,0002,0002,000Useful life1010

RORAI cannot be found out as all the net annual cash flows are negative . For present worth and…

Baguio Rabbitry must replace the piping system in its barn. Based on cost of capital of 12% which of the two following alternatives should be chosen using the following methods? a) RORAI b) AW c) PW Pamper pipes P 75,000 Fluid Flush First Cost P 90,000 Operating costs per 5,000 4,000 year Savings per year Salvage value 1,000 2,000 2,000 10 Useful life 10

Baguio Rabbitry must replace the piping system in its barn. Based on cost of capital of 12% which of the two following alternatives should be chosen using the following methods? a) RORAI b) AW c) PW Pamper pipes P 75,000 Fluid Flush First Cost P 90,000 Operating costs per 5,000 4,000 year Savings per year Salvage value 1,000 2,000 2,000 10 Useful life 10

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

None
A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will be $10,000 per quarter with a salvage value of $25,000 after its 2-year life. Process B will have a first cost of $250,000, an operating cost of $15,000 per quarter, and a $40,000 salvage value after its 4-year life. The interest rate is 8% per year compounded quarterly. Using present value analysis which process should be selected.
A city engineer is considering two alternatives for the local water supply. Make a present-worth comparison of the equal-service machines for which the cost are shown below, if i-10% per year. %3! TYPE A TYPE B First cost, P Annual operating cost (AOC) 900 Salvage value, SV Life, years $3000 $4000 700 350 200 15 Which alternative machine should be selected and why?
Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of return analysis to determine which alternative should be selected? A B D E 4000 2000 1000 9000 639 410 117 785 15% 20% 10% 6% Cost Annual benefit Rate of return C 6000 761 11%
Engineering Economics . I hope For the solution as soon as possible
Please no written by hand
M2
Solve the Engineering Economics Problem
1. A pharmaceutical company that manufactures ascorbic acid tablets is investigating two production options that have the estimated cash flows shown ($10 million units). Which one should be selected based on a present worth analysis (in million units) at 10% per year? In- outsourced house Initial Investment -30 Annual cost, $ per year 24 -5 -2 Annual Revenue, $ per 13 year 2 N/A Salvage Value, $ Life
For the project with cash flow given below find the most sensitive factor among annual benefit, annual cost and salvage value if the changes by ±20%. Initial investment Annual revenue Annual Cost Salvage Value MARR Life in years Project Rs.2,00,000 Rs.1,00,000 Rs. 40,000 Rs. 50,000 10% 5
Hand written plzzzzz....asap plzzzzzz solve 30 minutes plz,,,, hand written plzzzzzzzx
Engr. Collado is using a 10% annual interest rate to decide if it should by cement mixer A with a gasoline engine or Cement Mixer B with a diesel engine. Equipment A Equipment B INITIAL COST Php 57500 Php 85800 LIFESPAN 10 years 10 years ANNUAL OPERATING COST Php 18000 Php 18000 ANNUAL REPAIR COST Php 20000 Php 10000 SALVAGE VALUE Php 0 Php 19000 Which of the two is more economical in the long run?