The projected market value and M&O costs associated with a presently owned machine which is bought for $70,000 2 years ago and best challenger available are shown. Determine if and when the defender should be replaced with the outside vendor using an interest rate of 10% per year. Assume used equipment similar to the defender will always be available. Note: You need to use at least 1 Gradient, 1 Annuity and 1 Single amount to get full marks) Defender Challenger Year Market value M&O Cost Year Market M&O Cost $ $ per Year value $ per Year $ 0 55,000 0 110,000 1 40,000 -5,000 1 95,000 -3,000 2 25,000 -6,000 2 85,000 -3,000 3 15,000 -7,000 3 70,000 -3,000 4 10,000 -8,000 4 55,000 -4,000 5 50,000 -5,000 6 40,000 -6,000 By using Present worth evaluation in incremental B/C analysis, determine which of the following mutually exclusive projects should be selected where MARR is 7% per year and Do Nothing is not an option: A B C D Initial Investment at year 0, $ $800,000 $600,000 $400,000 $500,000 Initial Investment at year 2, $ $200,000 $300,000 $200,000 $150,000 Annual Benefit, S/Year $400,000 $250,000 $180,000 $210,000 Annual Disbenefit, $/Year $50,000 $40,000 $30,000 $45,000 Annual M&O costs, S/Year Life cycle $60,000 $50,000 $45,000 $30,000 7 years 7 years 14 years 14 years

An industrial plant has hired a contractor to develop a solar farm nearby for the industrial plant's electricity consumption. During the 3-year construction period, the contractor will need to run a generator to power the construction. Cost analysis from previous projects indicates: Generator Brand Installed Cost Cost per Hour A $22M $500 B $23M $400 C $25M $250 D $30M $150 At the end of 3 years, the generator will have a salvage value equal to the cost of removing them. The generator will operate 6,000 hours per year. The lowest interest rate at which the contractor is willing to invest money is 7%. (The minimum required interest rate for invested money is called the minimum attractive rate of return, or MARR.) Select the alternative with the least present worth of cost. O Choice "C" with $29,872,900 O Choice "B" with $29,298,320 O Choice C with $28,936,450 O Choice "A" with $29,872,900

New microelectronics testing equipment was purchased 2years ago by Mytesmall Industries at a cost of $600,000. Atthat time, it was expected to be used for 5 years and thentraded or sold for its salvage value of $75,000. Expandedbusiness in newly developed international markets is forcingthe decision to trade now for a new unit at a cost of$800,000. The current equipment could be retained, ifnecessary, for another 2 years, at which time it would have a$5000 estimated market value. The current unit is appraisedat $350,000 on the international market, and if it is used foranother 2 years, it will have M&O costs (exclusive ofoperator costs) of $125,000 per year. Determine the valuesof P, n, S, and AOC for this defender if a replacementanalysis were performed today. P = market value =$350,000AOC = $125,000 per yearn = 2 yearsS = $5,000

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Economics Last year, a decision was made to keep the same equipment in lieu of buying new equipment. The old equipment's trade-in value last year was $4000 and its value this year is $2000. The operating cost was $700 last year. If bought last year, the new equipment would have cost $13K, the salvage value after 8 years would be $2000, and it would have an annual operating cost of $4000. If bought last year, what would have been the EUAC of the new equipment (in dollars) at 16% interest rate per year? (provide your answer in the box as a negative value if you arrive at costs) What would have been the correct decision? (provide your answer and justification in your pdf file submission)

Show complete solutiion. Do not use excel. Manual Method. Steel drums manufacturer incurs a yearly operating cost of P 200,000. Each drum manufactured cost P 160 and sells for P 300. A machine use for the production has a first cost of P 20,000 and a salvage value of P 2,000 after producing 1,000 units. What is the break even number of units per year?

Show the correct answer to this problem. Please not that in excel type of calculation I need a detailed solution with formulas and computations on it. Thank you.

For th below two machines and based on CC analysis which machine we should select? MARR=10% Machine A Machine B First cost, $ Annual cost, $/year Salvage value, $ Life, years 3 Answer the below question: B- the CC for machine B= 20872 9067 4793 - 123476 infinite 9266

Please correct answer and don't use hand rating