Required information A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $16,000 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,500. A new power line will cost $22,500 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. At an interest rate of 10% per year and using an AW analysis, which alternative should be selected? The annual worth of installing solar cells is $- 25477, and the annual worth of installing a new power line is $- 26291 The alternative to be selected is installing solar cells ✔

Required information A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $16,000 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,500. A new power line will cost $22,500 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. At an interest rate of 10% per year and using an AW analysis, which alternative should be selected? The annual worth of installing solar cells is $- 25477, and the annual worth of installing a new power line is $- 26291 The alternative to be selected is installing solar cells ✔

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

Corrosive liquids are transported through pipes in a factory . Ordinary pipes will have an installedcost of P30,000 and their useful life is 3 years . Stainless steel pipes are higly resistant to the corrosive effectof the liquids and are being considered as an alternative . These pipes are estimated to have an installed costof P55,000 . Salvage value is zero in each case . If money is worth 8% and assuming replacement costs to be thesame as the original prices , what should be the useful life of the stainless steel pipes to have equal capitalizedcost as the ordinary pipes? A) 5.3 years C) 5.9 yearsB) 5.6 years D) 6.2 years
S Required information A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $16,800 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,900. A new power line will cost $24,500 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. At an interest rate of 10% per year and using an AW analysis, which alternative should be selected? The annual worth of installing solar cells is $- a new power line is $- The alternative to be selected is (Click to select) and the annual worth of installing
Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the present values of their purchase profit? Use MARR of 20%
Buying Equipment 1 from XYZ company and company ABC will give the production similar productivity input of 400,000.00 per year. The equipment from company XYZ has a purchase price of 200,000.00, annual maintenance of 5,000.00, and production life of 10 years, while the equipment from company ABC has a purchase price of 100,000.00, annual maintenance of 2,000.00, and production life of 12. Using present worth method, what is the total present worth of each alternatives? Use MARR of 20%
A firm will install one of two mechanical devices to reduce costs. Both devices have useful lives of 5 years and no salvage value. Device A costs $10,000 and can be expected to result in $3000 savings annually. Device B costs $13,500 and will provide cost savings of $3000 the first year, but savings will increase $500 annually, making the second-year savings $3500, the third-year savings $4000, and so forth. With interest at 7%, which device should the firm purchase?
Calculate the future worth (FW) at 10% of a project that will save $25K per year for 20 years. The first cost is $120K, and the salvage value is $20K. Compare this with the PW and the EAW. (Please show the process and solution ty.)
A company is offered a new computer program that is supposed to provide savings in costs. The cost of the program and equipment is $274,000 and will have a useful life of 5 years and a salvage value of $59,000. The annual operating costs of the program will be $50,000 per year. In the 3rd year an upgrade is needed with a cost of $20,000 If the MARR of the company is 18%, how much must the annual equivalent savings in costs be, to justify the implementation of this program?
Required information Akash Uni-Safe in Chennai, India, makes Terminator fire extinguishers. The company needs replacement equipment to form the neck at the top of each extinguisher during production. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years D E -70,000 -15,000 10,000 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. -60,000 -12,000 8,000 Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors. The future worth of machine D is $- 8008 and the future worth of machine E is $- 20280 The machine selected based on the future worth analysis is
Please Solve In 15mins e-h
Economics Nancy’s Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $31,500 per year. Nancy can buy a used truck for $8,000 that will be adequate for the next 3 years. Operating and maintenance costs are estimated to be $24,000 per year. At the end of 3 years, the used truck will have an estimated salvage value of $3,200. Nancy’s MARR is 25%/year. What is the present worth of this investment? $
A concrete pavement on a street would cost $10,000 and would last for 5 years with negligible repairs. At the end of each years, $1,000 would be spent to remove the old surface before $10,000 is spent again to lay a new surface. Find the annual cost of the pavement at 5%.
Time Value of Money - Buy vs Rent Decision Rebecca Young recently graduated from Masters program and started working for a consulting company. She is faced with the decision of purchasing a new condominium for $250,000 or continuing to live in a rented condominium with a monthly rent of $1,250. Prevailing interest rates are 4%. She expects to stay in either the rented or purchased condominium for 10 years. It is important to note that there are many items to consider. Primarily, Rebecca would need to acquire a mortgage to finance the new condominium, and provide a down payment of 20%. If she were to rent a condominium, she could invest her $50,000 down payment and hopefully achieve a Rate of Return higher than her mortgage interest rate. There is also the consideration that her investment in purchasing the condominium would appreciate as the value of the condominium increased - most likely. The decision to purchase or rent includes many additional considerations such as relocation…