PARC Co. has asked you to recommend a new nutcracker machine. After months of hard research, you have collected the following data: Data Life, Years First Cost (FC) Benefit, Yearly (AB) Benefit Gradient (ABG) O&M cost Gradient (M&OG) O&M Cost uniform annual Salvage Value O 21 years O 12 years O 18 years KRAX 6 O 24 years $202,000 73,000 1,200 600 18,000 42,000 SPLIT-NUT PARC Co. assumes MARR = 15%. Using the Net Present Worth (NPW) analysis: The analysis period if you are going to use NPW is close to: 9 $285,000 88,000 1,300 1,100 34,000 48,000
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- Compare the machines below using present worth analysis at i10% per year and find which one should be selected Machine Y First Cost Operating Cost Savage Lfe cycle Machine X 20.000 3.000 3.000 3years Firat Cost 30.000 .000 Annuel Operating Cost Salvage Life cycle 3.000 6 yoarsA company is considering two types of equipment with the following informations. Using benefit - cost ratio which equipment must be adopted if money is worth 10% per annum. Туре А P5,000.00 1,250.00 1,080.00- 2,380.00 Туре В MP11,750.00 3,750.00 1,130.00 3,880.00 First Cost Salvage Value Annual Maintenance Cost Annual Benefits Life, years 12 G00.02.Consider a machine that initially cost $6,000 and has these estimated annual expenses and market value: End of year Annual expenses, $ 2,000 2,000 2,000 3,000 3,000 Market value at end of Year, $ 5,200 4,200 1 2 3 3,200 2,200 1,200 4 5 If the MARR is 9% per year, determine its economic service life (Suppose an Economic Service Life occurs in the fourth or fifth year. Show Cash Flow Diagram for those years).
- Your boss has told you to evaluate the cost of two machines.After some questioning, you are assured that they have thecosts shown at the right. Assume:a) The life of each machine is 3 years.b) The company thinks it knows how to make 14% oninvestments no riskier than this one.Determine via the present value method which machine topurchase. MACHINE A MACHINE BOriginal cost $13,000 $20,000Labor cost per year 2,000 3,000Floor space per year 500 600Energy (electricity) per year 1,000 900Maintenance per year 2,500 500Total annual cost $ 6,000 $ 5,000Salvage value $ 2,000 $ 7,000Consider the following 2 alternatives. The cost and benefit information for the 2 alternatives is in the table below. A B Initial cost $ 6000 $ 12200 Benefit annual $ 1800 $ 2100 Useful life 4 years 8 years Residual value $ 500 $ 700 MARR 7% a) Using an 8-year analysis period, the equivalent Present Value for alternative A is $ Answer and the equivalent Present Value for alternative B is $ AnswerYou are equipping an office. The total office equipment will have a first cost of2.0Mand a sal-vage value of$200,000. You expect the equipment will last 10 years. Use a spreadsheet to compute the40%bonus depreciation with MACRS depreciation schedule.
- A warehouse manager is evaluating 2 different robotic systems to be installed in his warehouse. Using the present worth analysis, determine which is the economically better system if MARR is 12% per year compounded monthly. Justify your answer. System A System B - 40,000 -60,000 - 5,000 Initial cost, RM Maintenance cost, RM per month Semi-annual maintenance cost, RM per 6-month Salvage value after 5 years, RM - 13,000 8,000 10,000Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated. $13,000 at 6.3% compounded semiannually for 5 years $3466.53 Ⓒ$9578.05 $17,727.02 $9533.47 QUESTION 6 Find the correlation coefficient. The following are costs of advertising (in thousands of dollars) and the number of products sold (in thousands): Cost 6 3 7 6 10 4 7 7 Number 54 75 91 57 96 52 92 100 O 0.6112 O 0.6756 O 0.2635 O-0.3707 4 QUESTION 7 Find the effective rate corresponding to the given nominal rate. Round to the nearest hundredth. 5% compounded quarterly O 5.06% Click Save and Submit to save and submit. Click Save All Answers to save all answers. 144HZ Hi-Res 3ms AUDIO ESS ZEPHYRUSKomfy Karzis evaluating a project (Project A) that costs $325.000 and is expected to generate 5200,000 for the next two years. They are also evaluating a project (Project B) that costs $350,000 and is Expected to generate $200,000 inthe firstyear and $230.000 in the SCEond year Komfy srequiredrate of returnfor both projectsis 18.3% Upload a file with the following calculations a Caleulate the NPV for bofhprojects b) Calculate theIRR for both prejecrs O Caleuiate the paybackperiod fobarhproje d Calculate the discounted naypack berloafor both projects. e) Calculate the gross-over ratel
- DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and disbursements associated with the project are shown below. MARR is 6%/year. What are the Present Value, Future Value, and Annual Worth of this investment? End of Year Receipts Disbursements 0 $5,000 1 $200 2 $300 $600 $1,000 $1,500 3 4 5 $0 $0 $2,000 $4,000 $3,000 $1,600A manufacturing company is trying to decide between the two machines shown below. Determine which machine should be selected on the basis of rate of return. Assume the MARR is 20% per year. Machine A Machine B Initial Cost, $ -18,000 -35,000 Annual operating cost, $/year -4,000 -3,600 Salvage value, $ 1,000 2,700 Life, years 3 6Acme corporation is considering two alternative injection molding machines, and MARR is 15% per year. Plot the sensitivity of each alternative in Excel for the following three cases of varying Net Annual Revenue (NAR), where NAR = Annual Revenues – Annual Expenses: -50% 0% +100% Using annual worth (AW) analysis, which alternative has higher sensitivity to the Net Annual Revenue (NAR)? Show computations and paste an Excel spider chart. Item Alternative A Alternative B Capital investment Annual revenue $500,000 $150,000 $75,000 $50,000 5 years $375,000 $130,000 $80,000 Annual expenses $37,000 6 years Salvage value Useful life