The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,800,000 $-620,000 $90,000 8 years Push System $-2,500,000 $-640,000 $130,000 8 years termine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 13% per ar. e salvage value for the push system is determined to be $ in $1000 units.

The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,800,000 $-620,000 $90,000 8 years Push System $-2,500,000 $-640,000 $130,000 8 years termine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 13% per ar. e salvage value for the push system is determined to be $ in $1000 units.

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

The cash flows for two small raw water treatment systems are shown. ِA. Determine which should be selected on the basis of an annual worth analysis at 10% per year interest. B. Draw a cash flow diagram
Economics Compare two CNC machines, A and B, on the basis of a present worth evaluation, and select the best alternative using i- 10% per year and a study period of 6 years. Alternative A First cost, $ -15,000 -28.000 Annual operating cost, S/year Major Maintenance in year 4, S -6,000 -9,000 -2000 Salvage value,S 3,000 5,000 Life, years Market value for machine A, at year 6 is 4,000, and 7,000 for machine O -15,000 - 6000(P/A,106,6) - 12,000(P/F,10%,4) + 4000(P/F,106,6)= S- 57,069.82; Select machine A O -15,000 - 6000(P/A,10%,6) - 12,000(P/F,10%,4) + 4000(P/F,10%,6) = 5-47,069.82; Select machine A O -28,000 - 9000(P/A,10%,6) - 2000(P/F,10%,4) - 7000(P/F,10%,6) = 5-81,445.86; Select machine B O 28,000 - 9000(P/A,10%,6) - 2000(P/F,10%,4) - 7000(P/F,10%,6)= S-64,612.05; Select machine B
Compare the alternatives below using AW and i = 10% per year D -350,000 -35,000 35,000 ∞ First Cost, $ Annual operating cost, $/year Salvage value, $ Life, years с -150,000 - 10,000 15,000 10
3. PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use the PW to select the best alternative at a MARR of 14% per year. Platform X Y Ꮓ Initial Cost, $ million 300 450 510 M&O, $ million per year 320 290 230 Salvage Value, $ million 75 50 90 Estimated Life, years 20 20 20
Car A costs $800 more than Car B, but it consumes 0.035 gallons/mile versus 0.06 gallons/mile for Car B. Both vehicles last 10 years and B's salvage value is $175 smaller than A's. Fuel costs $2.30/gallon. Other things being equal, beyond how many miles of use per year (x) does A become preferable to B?
For equipment that has a first cost of $11,500, the estimated operating costs and year-end salvage values are as shown. Year 1 2345 Operating Cost, $ Salvage Value, $ -1,000 7,000 -1,200 5,000 -1,300 4,500 -2,000 3,000 -3,000 2,000 etermine the economic service life ESL, at /= 10% per year using factors. he economic service life ESL, is years with the AW= $-|
please explain/show how you got the answer
5.24 You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $160,000, an operating cost of $7000 per quarter, and a salvage value of $40,000 after its 2-year life. Package L has a first cost of $210,000 with a lower operating cost of $5000 per quarter, and an estimated $26,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 8% per year, compounded quarterly?
For th below two machines and based on AW analysis which machine we should select? MARR=10% Machine A Machine B 26612 12417 4135 Life, years 3 Answer the below question: B- the AW for machine B= First cost, $ Annual cost, $/year Salvage value, $ 140454 7170 infinite
Kk.7.
None
5.24 For the cash flows below, use an annual worth comparison to determine which alternative is best at an interest rate of 1% per month. First cost, $ M&O costs, $/month Overhaul every 10 years, $ Salvage value, $ Life, years X -90,000 -400,000 -30,000 -20,000 - Y 7000 3 - 25,000 10 Z -900,000 -13,000 -80,000 200,000 8