For the cash flows shown, determine the incremental cash flow between machines Band A for (a) year 0, (b) in year 3, and (c) in year 6.MachineFirst Cost, $АОС, $/yearSalvage value, $ 3,000Life, yearsB-15,000 -25,000-1,600-4006,00034O (a) = -10000 (b) = -1800 (c) = 1200%3D!3!O (a) = -10000 (b) = 13200 (c) = 4200!3!%3!O (a) = -10000 (b) = 13200 (c) =6000%3!%3DO (a) = -10000 (b) = 13200 (c) = 13200%3D

Given: First Cost: A: -15000, B:-25000

For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ AOC, $/year Salvage value, $ 3,000 Life, years A B -15,000 -25,000 -1,600 -400 6,000 3 4 (a) = -10000 (b) = -1800 (c) = 1200 %3D (a) = -10000 (b) = 13200 (c) = 4200 %3D %3D (a)= -10000 (b) = 13200 (c) =6000 O (a) = -10000 (b) = 13200 (c) 13200

For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ AOC, $/year Salvage value, $ 3,000 Life, years A B -15,000 -25,000 -1,600 -400 6,000 3 4 (a) = -10000 (b) = -1800 (c) = 1200 %3D (a) = -10000 (b) = 13200 (c) = 4200 %3D %3D (a)= -10000 (b) = 13200 (c) =6000 O (a) = -10000 (b) = 13200 (c) 13200

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

the The fixed costs at Mahi consulting company are $120,000 annually. The annual revenue is $3,000 per client and each client has a $500 variahl cost. Find the breakeven point per year and the annual profit/loss if 408 60 clients have are serviced next year.
Required information The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ R -250,000 -40,000 3 20,000 Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $- The better alternative is (Click to select) S -370,500 -50,000 5 20,000 and the annual worth of machine S is $-
Compare the alternatives below using AW and i = 10% per year D -350,000 -35,000 35,000 ∞ First Cost, $ Annual operating cost, $/year Salvage value, $ Life, years с -150,000 - 10,000 15,000 10
A manufacturing company produced 40,000 boxes of a product that sold for OMR 3 per box. The total variable costs for the 40,000 boxes were OMR 60,000, and the fixed costs were OMR 75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by OMR 28600.
A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $36,000, an operating cost of $4000, and a salvage value of $15,000 after 3 years. A Ford model will have a first cost of $32,000, an operating cost of $3100, and also have a $15,000 resale value, but after 4 years. (a) At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis. (b) What are the PW values for each vehicle?
10. Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows: Power Plant NOT (thousands of $) $13,000 15 years $3,000 $1,000 $200 $550 Investment cost Useful life Market value (EOY 15) Annual operating expenses Overhaul cost-end of 5th year Overhaul cost-end of 10th year
An engineer who is saving for her retirement plans to deposit $500 every quarter, starting one quarter from now, into an investment account. If the account pays interest at 6% per year, compounded semiannually, the total she will have at the end of 25 years is closest to: (a) $50, 000 (b) $56, 400 (c) $79,700 (d) $112, 800 (e) None of the above b d
A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $36,000, an operating cost of $4000, and a salvage value of $15,000 after 3 years. A Ford model will have a first cost of $32,000, an operating cost of $3100, and also have a $15,000 resale value, but after 4 years. (a) At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis. (b) What are the PW values for each vehicle?
A furniture company intends to evaluate whether they want to stick with th equipment (defender) or replace them with the new productive equipment (challenger). The details of the cost required are shown in Table Q3(b) below. Use an interest rate of 20% per year. Items Initial cost eight (8) years ago (RM) Market value (RM) Yearly handling cost (RM) Life time (year) Salvage value (RM) Defender Challenger 450,000 25,000 700,000 160,000 70,000 5 10 50,000 Use the replacement analysis to justify whether the existing equipment is required to be replaced with the new equipment. (ii) If the existing equipment (defender) could be sold in international market, determine how much is the minimum value of the defender so that the challenger could replace the defender now?
How much will Sonja have in a savings account 12 years from now if she deposits $3000 now and $5000 four years from now? The account earns interest at a rate of 10% per year. (a) $10,720 (b) $9,415 (c) $20,133 (d) $15,630 (e) Greater than $22,000
As part of your inheritance, you received a bond that will pay interest of $700 every 6 months for 15 years. If the coupon rate is 7% per year, the face value of the bond is (a) $10,000 (b) $20,000 (c) $30,000 (d) $40,000
Show your complete solution.