ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Bartleby Related Questions Icon

Related questions

Q: A $40,000 machine will be purchased by a company whose interest rate is 12% APR, compounded daily.…
A: Economic life is that  period of time during which an asset remains useful to the average owner.
Q: A logistics company is budgeting for its fuel usage for the next 4 years. Current fuel costs are…
A: Annual Fuel Cost = 350,000 Inflation = 6% MARR = 16% Time = 4 years
Q: Problem 06.004 Annual Worth and Capital Recovery Calculations A delivery car had a first cost of…
A: Annual Worth analysis: The annual worth (AW) analysis is preferably used to compare alternate…
Q: a young engineer wishes to become a millionaire by the time he is 60 years old. He belives that by…
A: An investment is the allocation of resources, typically money, with the expectation of generating…
Q: A pipeline contractor can purchase a needed truck for $42,000. Its estimated life is 6 years, and it…
A: here we calculate the following questions by using the given data , so the calculation of the…
Q: Assume that you are considering to buy a Toyota Corolla automoble. You need to select one of the…
A: Given:                             Diesel                        Gasoline…
Q: A new equipment was bought for $19,000 with a life of five years. The equipment also has no salvage…
A: Given: New equipment cost=19000 Annual operating cost=13000,13910,14883.70,15925.56,17040.35 Number…
Q: A construction machine was bought for $200,000 four years ago. The operating costs were $15,000 per…
A: Rate of Return: rate of return refers to the profit or loss made on an investment over a specific…
Q: A potential project is currently under review. An initial investment of 87000 would be necessary for…
A: Initial investment = 87000  Annual revenues = 40000 Annual expenses = 19000  Salvage value = 17000…
Q: A portable concrete test instrument used in construction for evaluating and profiling concrete…
A: Given that; Alternative 1 has A portable concrete test instrument used in construction has initial…
Q: Please given full answer
A: Step 1:Analysis will be carried for 6 yrs (LCM of 3 & 6)Cash flow for Machine X will be repeated…
Q: Explain the annual-equivalent worth (AE) criterion?
A: Annual equivalent work criterion provides a measuring basis of investment worth through an annual…
Q: The data for new and used machines are shown below: Initial cost($) Annual operating cost ($/year)…
A: The present worth is the discounted value of a series of future cash flows. It represents the values…
Q: A $40,000 machine will be purchased by a company whose interest rate is 12% APR, compounded daily.…
A: Economic life implies the period during which a particular economic entity, such as an individual,…
Q: Bramble Corp. is considering purchasing one of two new diagnostic machines. Either machine would…
A: Net present value(NPV) is the difference between present value of all cash inflows and initial…
Q: Using the cost data for Project X and Project Y below, conduct a Present Worth Analysis to calculate…
A: Present Worth AnalysisWith the help of Present Worth Analysis investment options can be compared.…
Q: Investment $7,000 Annual operating Cost. Began first (1)year until the 8th year. (A-$1,500) Annual…
A: Initial investment P0=7000 Annual operating cost: OC =1500 Annual revenue R=4000 Additional…
Q: Calculate the equivalent uniform annual worth for the following set of cash flows. Round your answer…
A: When evaluating alternatives, the annual worth (AW) approach is often employed. • All cash flows are…
Q: 2. As the supervisor of a facilities engineering department, you consider mobile cranes to be…
A: Assessing capital expenditures or, in cases where numerous choices are mutually exclusive, choosing…
Q: Calculate the future worth (FW) at 10% of a project that will save $25K per year for 20 years. The…
A: In the future worth analysis, we find the future value of all the cash flows.  In the present worth…
Q: Ali needs to work on a project in Australia for 5 years and he needs a car. He has the choice…
A: Price of car = 300,000 Salvage value is given as = 30,000
Q: for th below two machines and based on CC analysis which machine we should select? MARR=10% Machine…
A: There are two alternatives, Machine A and Machine B. Machine A has a 3-year service life and Machine…
Q: In order to make a replacement decision, a firm calculated the equivalent annual cost of owning an…
A: Equivalent Uniform Annual Cost (EUAC) represents the annual total cost of owning, operating, and…
Question
A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $95.000 with $1,500 salvage value after 16 years. The other can be purchased and installed for $95,000 with $2,500 salvage value after 16 years. Operation and maintenance for each is expected to be $15,000 and $15,500 per year. respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 25%, and has a MARR of 9% after taxes. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Part a Your answer is correct. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Alternative 1 Show the AW values used to make your decision: Conveyor 1: $ Conveyor 2: $ Part b -20704 -21056 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10. x Your answer is incorrect. Attempts: 2 of 3 used. What must the cost of the second (more expensive) conveyor be for there to be no economic advantage between the two? Cost of the second conveyor: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10. 73944
expand button
Transcribed Image Text:A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $95.000 with $1,500 salvage value after 16 years. The other can be purchased and installed for $95,000 with $2,500 salvage value after 16 years. Operation and maintenance for each is expected to be $15,000 and $15,500 per year. respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 25%, and has a MARR of 9% after taxes. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Part a Your answer is correct. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Alternative 1 Show the AW values used to make your decision: Conveyor 1: $ Conveyor 2: $ Part b -20704 -21056 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10. x Your answer is incorrect. Attempts: 2 of 3 used. What must the cost of the second (more expensive) conveyor be for there to be no economic advantage between the two? Cost of the second conveyor: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10. 73944
Expert Solution
Check Mark
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
See solutionCheck out a sample Q&A here
Step 1: Define the given problem
VIEW
Step 2: For Conveyor 1:
VIEW
Step 3: For conveyor 2:
VIEW
Solution
VIEW
bartleby

Step by stepSolved in 4 steps with 4 images

See solution
Check out a sample Q&A here
Blurred answer
Knowledge Booster
Background pattern image
Economics
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
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education
SEE MORE TEXTBOOKS