Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. \table[[\\table[[Insulation], [ Thickness]], Installed Cost, \table[[Annual Savings in], [ Heat Loss]], Life of Insulation], [2cm, $20,000, $6,900 per year, 4 years], [3cm, $35,000, $9,000 per year, 6 years]] The MARR = 10% per year. The study period is 12 years. Draw the cash flow diagram for each alternative over the entire study period. Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. Insulation Thickness 2cm 3cm Installed Cost $20,000 $35,000 Annual Savings in Heat Loss $6,900 per year Life of Insulation 4 years $9,000 per year 6 years The MARR 10% per year. The study period is 12 years. Draw the cash flow diagram for each alternative over the entire study period.

Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. \table[[\\table[[Insulation], [ Thickness]], Installed Cost, \table[[Annual Savings in], [ Heat Loss]], Life of Insulation], [2cm, $20,000, $6,900 per year, 4 years], [3cm, $35,000, $9,000 per year, 6 years]] The MARR = 10% per year. The study period is 12 years. Draw the cash flow diagram for each alternative over the entire study period. Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. Insulation Thickness 2cm 3cm Installed Cost $20,000 $35,000 Annual Savings in Heat Loss $6,900 per year Life of Insulation 4 years $9,000 per year 6 years The MARR 10% per year. The study period is 12 years. Draw the cash flow diagram for each alternative over the entire study period.

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 i need solution in world formate
5
A furniture company intends to evaluate whether they want to stick with th equipment (defender) or replace them with the new productive equipment (challenger). The details of the cost required are shown in Table Q3(b) below. Use an interest rate of 20% per year. Items Initial cost eight (8) years ago (RM) Market value (RM) Yearly handling cost (RM) Life time (year) Salvage value (RM) Defender Challenger 450,000 25,000 700,000 160,000 70,000 5 10 50,000 Use the replacement analysis to justify whether the existing equipment is required to be replaced with the new equipment. (ii) If the existing equipment (defender) could be sold in international market, determine how much is the minimum value of the defender so that the challenger could replace the defender now?
ENGINEERING ECONOMY RATE WILL BE GIVEN. WRITE THE COMPLETE SOLUTIONS/EXPLANATION LEGIBLY OR TYPEWRITTEN. GIVE STRAIGHT TO THE POINT EXPLANATION. A tire manufacturer produces tires at a variable cost of $25 per unit. The plant has annual sales of $480,000 at a price of $40 per unit. Find the breakeven point in units of production. The annual fixed costs for the plant are $150,000.
How much will Sonja have in a savings account 12 years from now if she deposits $3000 now and $5000 four years from now? The account earns interest at a rate of 10% per year. (a) $10,720 (b) $9,415 (c) $20,133 (d) $15,630 (e) Greater than $22,000
For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ АОС, $/year Salvage value, $ 3,000 Life, years B -15,000 -25,000 -1,600 -400 6,000 3 4 O (a) = -10000 (b) = -1800 (c) = 1200 %3D !3! O (a) = -10000 (b) = 13200 (c) = 4200 !3! %3! O (a) = -10000 (b) = 13200 (c) =6000 %3! %3D O (a) = -10000 (b) = 13200 (c) = 13200 %3D
Mechanical engineer at Company B is considering five equivalent projects, some of which have different life expectations. Salvage value is nil for all alternatives. Assuming that the company’s MARR is 13% per year, determine which should be selected (a) if they are independent, and (b) if they are mutually (c) Explain why your selection in part (b) is correct. First Cost, $ Net Annual Income, $/Year Life, Years A -20,000 +5,500 4 B −10,000 +2,000 6 C −15,000 3,800 6 D −60,000 +11,000 12 E −80,000 +9,000 12
Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $130,000. Annual maintenance expenses are expected to be$6,500for the first8years and$8,500 each year thereafter upto 25years. With an interest rate of 9% per year, what is the present worth cost of this project? Choose the closest answer below. A) $202,422 B $238,597 C) $249,468 D) $277,339
Which of the following 1-year investments has the lowest rate of return? (a) $24,500 that yields $2222 in interest, (b) $82,000 that yields $8240 in interest, or (c) $62,500 that yields $5000 in interest .
Use the table to determine the discounted payback period using 7% per yearPeriod (n) Cash flow (An) Cost of funds (7%) Ending balance 0 -85,000 0 - 85,000 1 15,000 2 25,000 3 35,000 4 45,000 5 45,000 6 35,000
Example A company is considering two types of equipment for its manufacturing plant. Pertinent data are as follows: Freeze Type A Type B First cost P200,000 P300,000 Annual Operating Cost P32,000 P24,000 D Annual Labor Cost P50,000 P32,000 Insurance and Property Taxes 3% 3% Payroll Taxes 4% 4% Estimated Life TO 10 If the minimum required rate of return is 15%, which equipment should be selected?
12.9 A three-year maintenance contract for a local computer network costs $4000. The network is expected to be needed for fifteen years and the maintenance contract will be purchased for the same price at the beginning of every three year period. If the interest rate is 6%, the present equivalent cost of the maintenance contract is nearest: (A) $12,950 (B) $14,500 (C) $15,400 (D) $16,000