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

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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?
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
1) A ski resort wishes to evaluate two alternative machines for ski and board tuning. Select the best alternative using the AW method at 6% per year. Machine R Machine S Annual operating cost, $ per year -40.000 -50,000 Life, years 3 Salvage value, $ 20.000
QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% Machine A Machine B Machine C First cost, $ 15,828 30000 10000 Annual cost, $/year Salvage value, s Life, years 8,753 6,000 4,000 4,000 5,000 1,000 Answer the below questions: A- AW for machine A= QUESTION 4 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% Machine A Machine B Machine C First cost, $ 15000 21,344 10000 Annual cost, $/year 8,314 6,000 4,000 Salvage value, $ Life, years 4,000 5,000 1,000 Answer the below questions: B- AW for machine B=
Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 16% per year. Platform First cost, $ million Y Z -300 -450 -510 M&O, $ million per year -320 -290 -230 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20 Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- 2298.4 worth of platform Z is $- 1944.14 million, the present worth of platform Y is $- 2262.15 million, and the present million. The platform selected based on the present worth is platform Z
Solve without using Excel (economics factor table is okay)
Use annual worth
Compare the machines below on the basis of their annual worths, using an interest rate of 14% per year.
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 $-1,250,000 $-700,000 $105,000 8 years Push System $-2,350,000 $-500,000 $90,000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 13% per year. The salvage value for the push system is determined to be $ in $1000 units.