IfMorethan2alternativesyouareCompanyandtodecideofistryinginvestmentA > Incremental analysis (AlternativAlternative: A > Incremental analysisBCiftheadditionalincrementWorth while, compare.pairswinsthenB vs CACompanyConsidering2differentmachinesatMARRat12%Both lifespans=10yearsM/C XM/CYInitial Cost160000285000Annual Operating Cost4500045000Benefits per yearSalvage Value900001050002000040000

Present value refers to the value of a certain sum of money in the future or cash flows in the…

If are you and to Company decide More than 2 alternatives of is frying investment Worth while, compare Alternative: A > Incremental analysis (Alternative) B C if the additional increment pairs then B vs C MARR A Company at Considering 2 different machines at 12% Both life spans = 10 years M/C ✗ м/с у Initial Cost 160000 285000 Annual Operating Cost 45000 45000 Benefits per year Salvage Value 90000 105000 20000 40000

If are you and to Company decide More than 2 alternatives of is frying investment Worth while, compare Alternative: A > Incremental analysis (Alternative) B C if the additional increment pairs then B vs C MARR A Company at Considering 2 different machines at 12% Both life spans = 10 years M/C ✗ м/с у Initial Cost 160000 285000 Annual Operating Cost 45000 45000 Benefits per year Salvage Value 90000 105000 20000 40000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The purchase is to be financed by money borowed at 10% per year. Which fire truck should be purchased? The appropriate financial data are as follows: Truck X Truck Y Capital Investment $53000 S69000 Maintenance cost per year $5000 $5500 Useful life 5 years 5 years Reduction in fire damage per $19000 $20000 year Your answer: O Truck X O Neither Truck X nor Truck Y O Truck Y
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You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below. Compare them on the basis of annual worths at i= 14.00%. Machine First Cost Annual Cost per Year Salvage Value Life с $-30000 $-12000 $12000 D $-55000 $-17000 $18000 3 years 6 years
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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%
MARR is 8.4 % 3500 4000 A500 5000 Year O 5500 6000 6500 7000 1000 1500 6000 22000 2000 5600 2500 3000 3500 5200 4800 4400 4000 8000 4000 4500 Find the present worth? 4000 5500 16 17 5200 4900 1800 4600 2000 2200 4300 4000 2400 2600 3000 4000 5000 6000 2800 3000 3200 salvage 2000 3400 3600
Engineering Economics . I hope For the solution as soon as possible
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