DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $ 1,400, anestimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. MachineA37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $ 200 regardless of thenumber of gumdrops produced. MARR is 6%/year, and 30 million gumdrops ware produced each year.a. What is the annual worth of each alternative?Machine 7745 AW= $Machine A37Y AW-$Round your answer to the nearest whole dollar. Tolerance is +1.b. What is the decision rule for determining the preferred machine based on annual worth ranking?c. Which machine should be recommended?

Answered: Image /qna-images/answer/49eedc3c-03eb-465c-acc9-59d4c32eacf7.jpg

Answered: D. What is the decision rule for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. Solve the given question and give the correct answer.
a. Find the breakeven market value.b.Find the breakeven annual expense.C.Is the decision more sensitive to changes in market value or annual expense? How doyou know?
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 63
Whole solution
Rerform an EAC analysis and evaluate what decision to make regarding 2 challengers and 1 defender. Elaborate:a) Graphsb) EAC analysisc) Conclude the exercise and make a decision regarding the results Machine N1 (#1 challenger) useful life = 8 years Initial Cost $15,000 MARR 18% Year Operating costs Market value EAC 1 $ 355.00 $ 8,000.00 2 $ 500.00 $ 7,000.00 3 $ 788.00 $ 6,000.00 4 $ 1,000.00 $ 5,000.00 5 $ 1,355.00 $ 4,000.00 6 $ 1,688.00 $ 3,000.00 7 $ 2,012.00 $ 1,000.00 8 $ 2,345.00 $ 0.00
QUESTION 7 for th below two machines and based on AW analysis which machine we should select? MARR=10%. Machine A First cost, $ Annual cost, $/year Salvage value, $ Life, years 3 Answer the below question: A- the AW for machine A= 25,433 12,199 7,603 Machine B 100,000 7,000 infinite
a. Calculate using the PW method if the useful life is 50 years and the MARR is 10% per year and determine which is the best alternative.b. If the useful life of project A is 25 years, project B and project C are 50 years each, using the AW method, which project will be selected.attached:Investment: A = $8.500.000B $10.000.000C= $12.000.000O & M annual: A $750.000B = $725.000C = $700.000Salvage value: A = $1.250.000B = $1.750.000CS2.000.000annual benefits: A = $2.150.000B = $2.265.000C = $2.500.000
Give typing answer with explanation and conclusion
B2
Breakeven Example 8.2 • MARR is 12% per year. Select the more economical vendor bid. -8,000 - 13.000 Initial cost. S -3,500 -1.600 Annual costs, S per year Salvage value. $ Life. vears 2,000 10
Need answers ASAP... The annual worth can be calculated from the alternative’s: a. either ( a) or ( b) b. future worth by multiplying by ( F/A, i, n) c. all of the above d. present worth by multiplying by ( A/P, i, n)

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D. What is the decision rule for determining the preferred machine based on annual worth ranking? c. Which machine should be recommended?