Municipal Engineer wants to evaluate three alternatives for supplementing the water supply. 1st alternative – continue deep well pumping at an annual cost of $10,500 2nd alternative – install a 10” pipeline from a surface reservoir.  First cost is $25,000 and annual pumping cost is $7,000 3rd alternative – install a 20” pipeline from the reservoir. First cost of $34,000 and annual pumping cost of $5,000. Life of all alternatives is 20 years. For the second and third alternatives, salvage value is 10% of first cost. With interest at 8%, which alternative should the engineer recommend? Use present worth analysis   PW (deepwell) = ? PW (10”pipeline) = ? PW (20”pipeline) = ?

Question 5 The best alternative in most engineering economy studies is the one that: O Is most politically correct. O Has the smallest cost O Has the fewest cost elements O Is easiest to implement. Will last the longest time

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 $-

Use Annual Cost Analysis to determine whether Alternative A or B should be chosen. The analysis period is 5 years. Assume an interest rate of 6% per year, compounded annually Alternative A Alternative B Initial Cost Annual Benefit Salvage Value Useful Life (yrs) 1800 150 400 5 4230 340 2100 5 Alternative B should be chosen, because its annual benefit is higher than Alternative A's Alternative A should be chosen, because its initial cost is lower than Alternative B's Alternative B should be chosen, because its equivalent annual cost is $85.30 higher than Alternative A's Alternative A should be chosen, because its equivalent annual cost is $85.30 lower than Alternative B's

Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 13% per year and a study period of 10 years. Alternative C $-46,000 $4,000 $-1,300 $6,000 10 First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life. Years The present worth of alternative C is $1 (Click to select) offers the lower present worth. HELIME BIEN D $-20,000 $-7,500 $-100 $1,300 5 and that of alternative D is $ A

5

For alternatives shown in the table below and on the basis of their capitalized costs CC and an interest rate of 10% per year. Answer the following questions to select the better option: Alternative 45,025 5.000 Fist cost 5 249.854 13,000 Maintenance costs, 1 per year Salvage valu Periodic costs Severy 10 years e years 2.000 10,000 10.000 4. CC for alternative A

Give correct explanation and answer

A cost analysis is to be made to determine what, if anything, should be done in a situation offering three alternatives in addition to doing nothing. Costs and benefits of the alternatives are estimated as follows: Alternative Cost Uniform Annual Benefit Residual Value Useful life (years) A 450,000 150,000 0 4 B 550,000 125,000 300,000 4 с 800,000 135,000 250,000 8 Use an 8-year analysis period, "stacking" projects as necessary. Use Excel to choose which, if any, of the projects should be chosen: MÁRR is 15%. a. Using annual worth analysis b. Using rate of return analysis

(engineering economic) Four alternatives with cash flows (million rupiah) as follows: Determine the best alternative based on a 12% MARR using the following methods: (a) Rate of Return; (b) Payback Period