Required information Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style house that she is remodeling inside. She plans to keep this as her home for 20 more years. The house can be completely painted at a cost of $17.500, The paint is expected to remain attractive for 5 years, at which time repainting will be necessary. Every time the building is repainted (te, in years 5, 10, and 15), the cost will increase by 20% over the previous time. As an alternative, the exterior can be covered with a vintage-appearing vinyl-coated siding now and again 10 years from now at a cost 31% greater than the present cost of the siding At a MARR of 10% per year, what is the maximum amount that Brooke should spend now on the siding alternative so that the two alternatives will just break even? Solve using factors. The maximum amount that Brooke should spend now on the siding alternative is $

Required information Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style house that she is remodeling inside. She plans to keep this as her home for 20 more years. The house can be completely painted at a cost of $17.500, The paint is expected to remain attractive for 5 years, at which time repainting will be necessary. Every time the building is repainted (te, in years 5, 10, and 15), the cost will increase by 20% over the previous time. As an alternative, the exterior can be covered with a vintage-appearing vinyl-coated siding now and again 10 years from now at a cost 31% greater than the present cost of the siding At a MARR of 10% per year, what is the maximum amount that Brooke should spend now on the siding alternative so that the two alternatives will just break even? Solve using factors. The maximum amount that Brooke should spend now on the siding alternative is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Don't use Excel and pen or paper
Calculate the present worth of all costs for a newly acquired machine with an initial cost of $30,000, no trade-in value, a life of 12 years, and an annual operating cost of $16,000 for the first 5 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year. The present worth of all costs for a newly acquired machine is determined to be $ __________ plz answer correct asap help Dont answer by pen pepar
#38 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,387.00 to install, $5,018.00 to operate per year for 7 years at which time it will be sold for $7,075.00. The second, RayCool 8, costs $41,041.00 to install, $2,091.00 to operate per year for 5 years at which time it will be sold for $9,042.00. The firm's cost of capital is 6.50%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
An initial capital of $25,000 was put up for a new project that will produce an annual income of $8,500 for 5 years and then will have a salvage value of $1,000 at that time. Annual expenses for its operation and maintenance amounts to $750. If money is worth 7% compounded annually, determine the project's ERR (in %, round-off to 5 decimal places).
Annual thermal loss through the pipe lines of a factory is estimated to be $412 in terms of wasted energy. A new anti-heating technology can reduce the energy loss by 93% and costs for $1232. Although this new technology has no salvage value but it helps the factory to save much energy for upcoming 8 Years. Identify the present worth of the entire investment if the market rate is 10%.
. Calculate the present worth of a machine which costs $105000 initially and has a 10 year life with a $20000 salvage value. The operating cost of the machine is expected to be $6000 in year 1(end_of_year) and $6600 in year 2, and amounts increasing by the 10% through its 10-year life. Use an interest rate of 12% per year. Please don't used excel I again says don't used excel
Show your complete solution. Answer: 2,490.72
Company ABC is considering investing in a project whose initial cost is $186000. It saves $44000 in the first year, increasing by $5800 each year thereafter. The salvage value of the project is $12500 at the end of year 7. The cost of operating and maintenance in the first year is $3400, increasing by 4% each year thereafter. The company wants to see if the project is worth to be invested in. To help ABC to decide, you should find the present worth (PW) of the project. The company's MARR is 12%. Answer:
Company ABC is considering investing in a project whose initial cost is $185000. It saves $42000 in the first year, increasing by $5400 each year thereafter. The salvage value of the project is $13600 at the end of year 7. The cost of operating and maintenance in the first year is $3300, increasing by 5% each year thereafter. The company wants to see if the project is worth to be invested in. To help ABC to decide, you should find the present worth (PW) of the project. The company's MARR is 14%.
Who doesn't love food trucks? Imagine you are being offered to invest in a food truck as part of a restaurant business. The truck including equipment costs $100,000, has an expected useful lifespan of 10 years, and the estimated salvage value then is $5,000. The food truck will require a $20,000 overhaul after 6 years of use. The food truck costs $5000 per year to operate and maintain, but it will save the underlying restaurant operator $40,000 per year in labour and lease payments. As you are contemplating the offer you evaluate the economics of this idea... Your cost of borrowing money is 10%. You set yourself an MARR of 14%. What should you do? Invest or not? a) Use a timeline graph to summarize cash outflows and inflows over time. b) Conduct the ERR analysis. Explain each step of your analysis and related assumptions. Report the level of ERR for this proposal and discuss whether or not you (the decision maker) should invest?
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Hand written plz asap i'll upvote