Three mutually exclusive project alternatives are being evaluated. The estimated cash. flows for each alternative are shown below. The MARR is 15% per year. A decision maker can select one of these alternatives or decide to select none of them. Make a recomendation using the annual worth analysis. Investment ($) Project life (years) Annual revenue ($) Annual cost ($) Salvage value ($) Project A 6,000 10 5,200 2,100 1,200 Project B 8,000 10 6,000 1,800 1,500 Project C 9,000 10 7,500 2,000 2,500

Three mutually exclusive project alternatives are being evaluated. The estimated cash. flows for each alternative are shown below. The MARR is 15% per year. A decision maker can select one of these alternatives or decide to select none of them. Make a recomendation using the annual worth analysis. Investment ($) Project life (years) Annual revenue ($) Annual cost ($) Salvage value ($) Project A 6,000 10 5,200 2,100 1,200 Project B 8,000 10 6,000 1,800 1,500 Project C 9,000 10 7,500 2,000 2,500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Determine the present worth, future worth, and annual worth of the following engineering project when the MARR is 15% per year. Is the project acceptable? Investment cost $10,000Expected life 5 yearsMarket (salvage) value $1,000Annual receipts $8,000Annual expenses $4,000
Q1 Table Q1 shows the engineering project with minimum attractive rate of return (MARR) at 15% per year. Table Q1 Proposal A Investment Cost RM 10,000 Expected Life 5 years Market (Salvage Value) -RM 1,000 Annual Receipts RM 8,000 Annual Expenses RM 4,000 (a) Determine the present worth (PW), future worth (FW) and annual worth (AW) based on details given in Table Q1.
perform Breakeven Analysis for each cash flow element and determine the value at which you would breakeven for the expected case scenario (the data provided). It is not necessary to provide a breakeven graph for each cash flow.
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If the MARR=10%, compute the value of X that makes the alternatives equally desirable. Do not use spreadsheets. Alternatives Machine A Machine B First cost $12,000 $20,000 Annual Operating cost $1,400/year X Salvage value $2,000 $3,000 Life 4 years 8 years
QUESTION 5 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR-10%. First cost, $ Annual cost, $/year Salvage value, $ Life, years Answer the below questions: C-PW for machine C = QUESTION 4 First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: B- PW for machine B= Path: p 15000 8,055 4,000 Machine A First cost, $ Annual cost, $/year Salvage value, $ Life, years For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10% 15000 9,499 4,000 Machine B Machine A Answer the below questions: A-PW for machine A= 30000 6,000 5,000 22,701 8,590 4,000 Machine B 28,459 6,000 5,000 QUESTION 5 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10%. Machine C Machine B 13,398 4,000 1,000 QUESTION 3 For the below ME alternatives, which machine should be selected based on the PW analysis. MARR-10% 30000 Machine C 6,000 5,000 10000…
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
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= 20,538 11,820 7,655 infinite 113,798 8,894
Engineering Economics 00013 Please provide a step by step solution using Rate of Return (ROR) Thankyou
period of 5 years. Salvage value is estimated at 10% of its first cost. The interest rate is 12% per at $ 150,000. Labor and other operating costs are estimated to be $35,000 per year over the study high-use component can be purchased (bought) for S 25 per unit with a quick delivery. QWA Electronics is considering between two alternatives for their electronic components' needs. A Mestion #6 (20 points) cost of $ 5 per unit. For this option of making the product, QWA needs to purchase equipment today Alternatively, QWA can make the components in-house and have it already available at a variable year. Determine the breakeven quantity based on annual worth of cash flows. 0. Indicate whether to buy or make the components at the expected usage level of 5000 units per year. Explain your answer. a.
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