The O & M (operation and maintenance) cost of equipment is given in the table below. Determine the EUAC of the year 5.Assume a MARR of 7%.Year12345O & M Cost$10,0009,000$8,000$7,000$9,000 Group of answer choices$8,188.45$9,149.87$8,656.70$7,168.52

Step 1: Calculate the present worth (PW) of the O&M costs for each year.PW = Cost / (1 +…

Answered: The O & M (operation and maintenance)…

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

please answer all with complete solution and draw the cash flow diagram,,, do not use an excel please. thank you....
! Required information The annual revenues associated with several large apartment complexes are $225, $225, $275, $375, $75, and $125 for years 0, 1, 2, 3, 4, and 5, respectively. Determine the net cash flow and whether each cash flow series is conventional or nonconventional. The costs for years 0, 1, 2, 3, 4, and 5, respectively, are provided in the problems. When the cash flow is zero, assume it to be negative. Year 0 Cost, $ -1500 1 -450 The cash flow is conventional The Cumulative cash flow is 0 1 Year Cumulative CF, $ 2 -300 2 3 -400 3 4 -125 4 5 -400 5
You have decided to open a microbrewery selling university-themed beers as one of your product lines. You need to conduct a breakeven analysis of sales and price. You know your fixed costs but based on your marketing plan you are not sure of pricing and sales. Your company MARR is 5%, and fixed costs include an initial capital investment of $250,000 with fixed annual expenses of $100,000. Use a 5-year planning horizon and assume that these expenses will not grow with inflation. a. Draw the cash flow diagram. b. Populate the following table and plot the NPW results in a meaningful plot. (Make sure you label your axis, and your plot should contain three curves.) c. Make a pricing recommendation as a function of sales. You would like to make a minimum of $100,000 for your work on this project.
1. a) Find the future worth of the following cashliflow. $200 $200 $100 1 2 3 9 S K-5pk 6%- O $100 b) Find the present worth of cash flow in part (a) Equations: F = Px (1+i) ~
None
Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $20,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. Part a What is the future worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is £10.
Question 1 A corporate jet costs $1,350,000 and will incur $200,000 per year in fixed costs (maintenance, licenses, insurance, and hangar rental) and $277 per hour in variable costs (fuel, pilot expense, etc.). The jet will be operated for 1,200 hours per year for five years and then sold for $650,000. The MARR is 15% per year. What is the EUAC of the jet? $838,710 $1000.45 $445.66 $1500
You are asked to decide between two projects based on annual equivalent worth. A - $10,000 - $12,000 $6,000 $7,000 $5,000 $8,000 $4,000 Click the icon to view the interest factors for discrete compounding when i= 10% per year. (a) What assumptions do you need to make in comparing these mutually exclusive revenue projects? Select all that apply. O A. These two projects will be available in the future without significant changes in revenue expectations. B. The current projects are expected to continue for an indefinite period. O C. The two projects will be available in the future at the increasing cost. O D. The salvage values of two projects are the same.
QUESTION 7 for th below two machines and based on AW analysis which machine we should select? MARR=10%. Machine A First cost, $ Annual cost, $/year Salvage value, $ Life, years 3 Answer the below question: A- the AW for machine A= 25,433 12,199 7,603 Machine B 100,000 7,000 infinite
Given cash flows for two alternatives as shown in table below, choose the most attractive alternative if MARR = 8%. Year 0 1 2 3 through ∞ Alt. A -$42K $3.6K $3.6K $3.6K Alt. B -$54K $4.7K $4.7K $4.7K Group of answer choices Alt. A Alt. B Select neither Select either
Would love some help on how to approach this - thanks! The cash flows for three different alternatives are given in table below. MARR = 10%. Initial cost Annual benefits ROR Life in years Alt. A Alt. B Alt. C $5,000 9,000 7,500 $1,457 2,518 2,133 14% 13% 12.4% 1. AROR for the first increment (Alt. C-Alt. A) is A.10.12% B. 9.38% A. Alt. C 5 2. AROR for the second increment is A. 10.12% B. 9.38% B. Alt. A C. 11.85% D. 11.00% C. 8.94% 3. The best alternative for a MARR of 10% using the incremental rate of return analysis is D. Do nothing D. 9.87% C. Alt. B
7

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Year	1	2	3	4	5
O & M Cost	$10,000	9,000	$8,000	$7,000	$9,000

The O & M (operation and maintenance) cost of equipment is given in the table below. Determine the EUAC of the year 5. Assume a MARR of 7%. Year 1 2 3 4 5 O & M Cost $10,000 9,000 $8,000 $7,000 $9,000 Group of answer choices $8,188.45 $9,149.87 $8,656.70 $7,168.52