Consider a 3-D Printer at a anfacturing plant that has a initial cost of $150,000. The printer's operating and maintenance costs are $17,500 per year, whereas net salvage value is of $25,000 at the end of 30 years. Considering the profit rate of 8 percent/year. What is the future worth cost of this cash flow if the planning horizon is 30 years?
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- 2. Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $300,000 with annual costs of $35,000 and savings of $80,000 per year. The salvage value 10 years from now is projected to be $75,000. What rate of return will the firm make on this investment? Round your answer to the nearest .01 percent.Time left 0:142 A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18,000, and S of $7000 after 4 years, Machine Y will cost $50,000 with an AOC of $16,000 and 5 of $9000 after 6 years. The AW equations for Machine X and Y at 12% interest rates, are: Select one: O a. AWX=-30,000(A/P,12%, 12)-18,000 +7,000(A/F,12%, 12); AWY-=-50,000(A/P, 12%, 12)-16,000+ 9,000(A/F,12%, 12) O b. AWX=-30,000(A/P,12%,4) -18,000 +7,000(A/F,12%,4); AWY= -50,000(A/P,12%,6)-16,000+ 9,000(A/F,12%,6) OC. AWX=-30,000(A/P,12%,24)-18,000 +7,000(A/F, 12%,24); AWY -50,000(A/P, 12%, 24) -16,000+ 9,000(A/F,12%,24) O d. AWX=-30,000(A/P, 12%,6) -18,000 +7,000(A/F, 12%,6); AWY -50,000(A/P, 12%,6) -16,000+ 9,000(A/F,12%,6)Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has a $140,000 first cost. A similar one with many extra features, B has a $569,000 first cost. A will save $50,000 per year over the cutter currently in use. B will save $160,000 per year. Each clicker cutter will last five years. If the MARR is 8 percent, which altemative is better? Use an IRR comparison. For the increment from the do-nothing alternative to cutter A, the IRR is__ percent. For the increment from cutter A to cutter B, the IRR is_percent. Therefore, ____ should be chosen.
- A cash flow sequence has a receipt of $30,000 today, followed by a disbursement of $21,000 at the end of this year and again next year, and then a receipt of $10,000 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is %. (Round to two decimal places as needed.) b. The approximate ERR is %. (Round to two decimal places as needed.) c. A project with these cash flows be a good investment because the ERR and approximate ERR are both the MARR.A new flood control project is expected to involve expenditures for periodic heavy mainte- nance as tabulated below. Note that the first expenditure occurs at EOY 2, with subsequent expenditures at four-year intervals, increasing by 20 percent for each expenditure. Find the equivalent annual cost with i=15 percent per year and noo. %3D EOY Expenditure $250,000 300,000 360,000 6. 10 etc. etc. 2)Time left 0:14:27 A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18,000, and S of $7000 after 4 years. Machine Y will cost $50,000 with an AOC of $16,000 and 5 of $9000 after 6 years. The AW equations for Machine X and Y at 12% interest rates, are: Select one: O a. AWX=-30,000(A/P,12%, 12)-18,000 +7,000(A/F, 12%, 12); AWY= -50,000(A/P, 12%, 12)-16,000+ 9,000(A/F,12%, 12) O b. AWX=-30,000(A/P, 12%, 4) -18,000 +7,000(A/F, 12%6,4); AWY= -50,000(A/P,12%,6)-16,000+ 9,000(A/F,12%,6) OC. AWX=-30,000(A/P, 12%, 24) -18,000 +7,000(A/F,12%,24); AWY -50,000(A/P,12%, 24) -16,000+ 9,000(A/F, 12%,24) O d. AWX=-30,000(A/P, 12 %, 6) -18,000 +7,000(A/F, 12%,6); AWY= -50,000(A/P,12%,6) -16,000+ 9,000(A/F, 12 %,6) Which of the following statements is correct? O a. MARR is set higher than the WACC b. MARR is set by the financial manager of a company. OcA project that is economically justified should have a ROR higher than MARR.
- G.3. A proposed geothermal energy project has an initial cost of $1,000K. In addition it will re- quire an infinite series of periodic maintenance expenditures at five-year intervals following the first maintenance expenditure at EOY 2. Find the equivalent annual cost with n o and i = 88 percent per year. %3! EOY Expenditure Initial cost Periodic maintenance $1,000K 140K Same 200K 12 Sanme 260K 17 Same 320K etc. to co etc. to oo (Ans. NAW = $137,510K/yr)Please choose one of the following options. Double check your work. There is no additional information. This is the question and those are your options. PW analysis stands for Present Worth Analysis. It is a term used in engineering economics. What will be the total lifetime for every project if we compare them with PW analysis? Project A has a lifetime of 9 years, project B has a lifetime of 7 years, and project C has a lifetime of 3 years. 9 189 126 27 63Eddie’s Precision Machine Shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. Annual maintenance costs for the sprinkler system are $400. Ifthe sprinkler system is installed, the system must be included in the shop’svalue for insurance purposes but the insurance premium will reduce to $0.40 per $100 of coverage. Eddie uses a MARR of 15%/yr. Solve, a. What is the internal rate of return of this investment? b. What is the decision rule for judging the attractiveness of investments based on internal rate of return? c. Is the sprinkler system economically justified?
- incremental IRR cell. b. Determine the incremental IRR value that belongs in the overprinted cell. с. If MARR is 37 percent/year, which project is preferred? d. Based on the data in the table, if MARR is 40 percent, specify whether the present worth of each project would be positive, negative, or zero when evaluated at MARR? 35. The four alternatives described below are being evaluated: VILEY O Alternative W X Y Initial Investment $100,000 $75,000 $40,000 $200,000 IRR 16% 15% 29% 14% Тext The Incremental IRRS are: IRRW-Y 7% IRRW-x = 20% IRRX-Y 1% IRRZ-x 14% IRRZ-y = 10% IRRZ-w = 12% 15.5 percent/year? 9.5 percent/year? а. If the alternatives are independent, which one(s) should be selected if MARR = b. If the alternatives are mutually exclusive, which one(s) should be selected if MARR = The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is…Required rate of return is 25% a year. You are planning to invest $3,000 in new equipment. The investment will generate cost savings of $2,000 a year for two years after that the salvage value is zero. Compute the payback period. O 0.667 years O 4 years O 2.5 years O 1.5 years O not enough informationA contractor has a contract to construct a 12,000-ft-long tunnel in 30 months. He is trying to decide whether to do the job with his own forces or subcontract the job. He asks you to calculate the equivalent monthly cost of each alternative. His i = 1 percent per month. Production under both alternatives will be 300 ft per month. Alternative A Buy a tunneling machine and work with contractor’s own forces. cost of tunneling and machine = $ 2,400,000 paid now salvage value of machine at EOM 30 = $ 540,000 cost of labor and materials = $ 250/ft for the first 10 months, increasing by 0.5%/month at EOM each month thereafter Alternative B Subcontract the work. Cost $500 per foot of advance of the tunnel heading, for the full 12,000 ft.